Ramesh Damani, veteran market investor and a member of the Bombay Stock Exchange, on March 19 expressed his optimistic view of the recent bull run seen in the Indian equity markets. Speaking at Network18's 'Rising Bharat Summit 2024' in New Delhi, Damani drew similarities between the bull run seen in India to that of Japan in the late 1960s, which saw the then third world nation transform into the one of the largest economies in the world.
According to Damani, it is the growth of the great Indian middle class that has been the guiding factor, which is fueling the advancement of the Indian economy, making it a long-term story. "People are looking at extra money to save and invest, you see it through the rise in demat accounts and through mutual fund inflows," Damani said.
Following the cue, Aashish Agarwal, managing director and country head of Jefferies India, also drew a parallel between the current India and the US in the 1980s as it saw growth in the middle class due to economic stability, leading to a spike in household savings making its way into different asset classes.
Agarwal highlighted the vast scope for an increase in the share of equity investments in India's household savings as it currently stands at just around 5 percent, much lower than the share of gold investments which make up around 16 percent of the total savings.
With the scope to grab a higher share of Indian household savings, Agarwal feels the current time is the best to be bullish on India, especially given the fact that foreign investors are also taking cognizance of the country's strong economic prospects and making a comeback.
Shweta Jalan, managing partner and head of Advent International, spoke about India's attractive demographic profile and its status of having the world's largest working population. These factors contribute to a robust consumption cycle, fueled by policy support from the government, which has been acting as one of the key drivers of India Inc's growth engine, Jalan said.
With optimism arising from the growth triggers mentioned earlier, Jalan also believes that India is a multi-decade story from here on.
Damani also stands unperturbed by the bouts of high volatility seen in the market currently, as it sails through concerns over froth being formed in the small and midcap segment. Betting on India's long-term story, Damani sees the current volatility as just a winter snow that'll soon pass by.
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