Amit Jain, Co-founder of Ashika Global Family Office Services, predicts that Nifty will soar to 20,000 in the near future, driven by the underperforming blue-chip stocks that are poised for a comeback.
He believes the Indian stock market is in a structural bull run at least for the next 3 to 5 years. Hence, any correction in the market is a buying opportunity for long-term investors, he advised.
As for the investment, Jain says, "as of today, in export-oriented sectors you will find a lot of companies are trading below their fair value and now it is a good time to start accumulating these stocks at attractive valuations." Notably, Amit Jain has 18 years of experience in the Indian banking & financial services industry.
Q: Do you think the current equity market rally would be sustainable for a longer horizon?
In my last interview with you in February 2023, I said Nifty will touch 19,000 by the middle of the current calendar year, which is a reality today. I made that prediction on February 2023 when the world was gloomy and in our close circle of investors, they were talking that Nifty will go down to 16,000 which has been proved wrong.
For a very long time I have been saying that the Indian stock market is in a structural bull run at least for the next 3 to 5 years, any correction in the market is a buying opportunity for long-term investors.
In my view, this rally -- Nifty at 19,000 -- will continue as most of the blue-chip stocks, that have underperformed till date, will lead the next rally of Nifty to 20,000 very soon.
Q: What would be the biggest risk factor emerging for the equity markets in the rest of the financial year?
If you ask me the only risk factor for global markets will be escalated geo-political risk and sustained higher inflation for the next 1 year, this situation may create stagflation in European markets which may impact the global currency market and global economies adversely in the medium term. However, it will have the least impact on the Indian economy and the Indian stock market.
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Q: Is the Indian market looking expensive now in the emerging markets basket?
We have been answering this question for the last 5 years and the answer remains the same, yes, we are expensive for the rightful structural strength of the Indian economy.
As of now, we are trading at a 60 percent premium valuation compared to other emerging markets but in the long run, we still believe Indian investors will multiply their money many folds even from current levels.
Q: Do you still focus on domestic-oriented companies than exports for investment?
Till June 30, 2023, we preferred domestic themes over export-oriented themes but from tomorrow we may be investing in very selected export-oriented themes, where we believe that the price correction is over.
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As of today, in export-oriented sectors, you will find a lot of companies are trading below their fair value and now it is a good time to start accumulating these stocks at attractive valuations.
Q: Do you think the wealth will be created by new-age technology companies going forward?
Yes, I believe that in the near future, only those IT companies will create the next multibagger stocks whose underlined business model will be artificial intelligence.
In the Indian stock market, we have very limited opportunities for such kinds of stocks hence investors must invest in these companies where some of them are surely going to be the upcoming Infosys and TCS keeping the next 20 years in mind.
Q: Do you expect the IPO flood in the second half of 2023 or only after the general elections?
From my standpoint, if Nifty sustains above 18,000 for next 3 months, then you will see a lot of IPOs in Indian stock market.
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In this day and age whenever we speak to the promoters of any unlisted companies, they express their interest for unlocking their value of their businesses by listing on Indian Stock Market. This momentum of listing will gain attraction once Nifty sustains for its 200 DMA at least for next 3 months.
Q: What is your take on the recent decisions taken by the Sebi including IPO listing time?
I think in my judgement it is an excellent decision by SEBI for Indian investors. Now the IPO listing time has been reduced from 6 days to 3 days which is a pleasant surprise for traders and investors as now they can rotate their capital in a much more efficient way and may create alpha on their capital investments.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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