In his exclusive interview to CNBC-TV18 on March 3, Nilesh Shah, Founder and CEO, Envision Capital, said that the Indian market will be seen outperforming other equity markets including the US in the coming years. In this conversation, he further said that we are of the clear view that emerging markets will outperform US markets and this includes the Indian market.
Nilesh Shah’s statement comes at a time when NSE through its subsidiary NSE IFSC has allowed investors to invest directly in American equities in GIFT city. These investments can be made through un-sponsored depositories.
Earlier, investors could invest in US stocks only through mutual funds and ETFs, but now they can invest directly in select US stocks and hold these stocks in their demat account with a stockbroker registered with the NSE IFSC.
This initiative comes at a time when Indian investors are showing interest in investing in American stocks. Indian investors want to take advantage of the boom in technology stocks in the US market over the past few decades. Based on the returns so far, the Indian equity markets have outperformed the Indian equity markets over the past decade.
Nilesh Shah believes that amidst the recent turmoil in the market, there is no significant reason to say that anything unusual has happened in the market. The correction so far in the Indian market is healthy. India’s key indexes have broken nearly 10 per cent from their record highs of October 2021. The reason for this is the possibility of increasing interest rates around the world and the Russian attack on Ukraine.
In this conversation with CNBC-TV18, Nilesh Shah said that even in the midst of recent geopolitical tensions, the market has shown a lot of strength, it is a matter of great relief and happiness in itself. Nilesh Shah advises that investors should adopt a buying strategy on the downside in some automobile companies in this time. However, there are some challenges for them in the short term. Along with this, he has advised not to invest in ONGC.
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He says that so far this year, ONGC’s shares have lost 17 per cent due to the huge increase in crude oil. Nilesh Shah says that it would not be advisable to invest in such stocks because it cannot be said how much the crude oil prices will rise now and how much further this increase will have an effect on this stock.
Nilesh Shah is also not too enthusiastic about midcap IT stocks. He says that now any upside coming in this sector will depend on the strength of their earnings growth. Buying in mid cap IT stocks would be advisable only if there is a fall of 5-10 per cent in these stocks from the current levels.
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