Value investor Porinju Veliyath of Equity Intelligence India continues to be bullish on Indian market despite consistent selling for the past few sessions. He disagrees that the previous Samvat was a disaster. There are “smart investors, value investors who created huge wealth in the last one year,” he said. Veliyath is willing to bet on Samvat 2072 as a fantastic year for the value investor, just as the previous year was.
Below is the transcript of Porinju Veliyath’s interview with Anuj Singhal and Ekta Batra on CNBC-TV18.
Anuj: Your hypothesis on twitter was that the market should rally from here on. Are you surprised by the consistent selling that we have seen over the last three or four days?
A: Markets are weak. There is no doubt about it. There are many concerns, economy-specific, market-specific and even politically, these things are a part of our day-to-day market life. At the same time, we should look at the big picture. If somebody is an investor, that is most important and that is what is missing in our markets today. And I am very bullish on Indian markets and people change the mood just looking at the day’s Nifty or Sensex being beaten down or a couple of stocks falling because of some company-specific news. But, equity investing or rally investing is much beyond that.
Now, media is saying Samvat 2071 was a disaster. Nobody made money. I do not believe so. Maybe those who are following the Nifty and Sensex, or if they buying the broader market. But I am telling the thousands of Indians, smart investors, value investors created huge wealth in the last one year.
Anuj: That point is taken that last year was all about individual bottom-up stock picking and a lot of stocks did well. But, at the end of the day, a lot of retail sentiment is driven by what is happening at index level which is where the market is clearly hurting.
A: That may continue. See, this Samvat 2072 also, it is not going to be very exciting for those who are looking at the general markets. What I am telling is something different. What I am talking is about stock picking. The opportunity, whether there are opportunities in the Indian markets for stock picking. We had it a lot in the last 2070 and 2071; and 2072 also is going to be a fantastic year from that perspective. I do not know about foreign institutional investor (FII) selling or Morgan Stanley Capital International (MSCI) recasting their indices on emerging markets, on India or if Fed will hike the rate in December.
If people are looking at those kind of things, they miss the big picture on India, the big opportunity for value investing in this country. So, what I am trying to tell investors, leave all those things. Of course, one has to be aware about the macro and everything, but you ignore the Nifty what the National Stock Exchange (NSE) has made, you make your own Nifty. That makes sense. If wealth creation is your motto, you make your own Nifty and create wealth and Indian markets, I am telling you it is a great opportunity in this coming one year.