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NEW DELHI: Porinju Veliyath, founder and the CEO of Equity Intelligence, expects the Interim Budget to provide some trigger and take care of the ‘hopelessness’ or extreme fear prevailing in the domestic stock market.
Veliyath said investors used to celebrate Budget.
But after a huge drawdown in the midcaps and smallcaps, he thinks there is a big fear factor.
“I have never seen hopelessness like this in my time of two, three decades.
Even as Nifty and Sensex are near their highs and reasonably outperforming global markets this last one year, the average investor in India has shown some kind of hopelessness, which is very bad,” he told ETNOW in an interview.
Veliyath feels the market has all the reasons to bottom out and start going up.
“I feel even without waiting for the bigger event, the general elections, investors are going to come back to the market.
Something will be definitely coming up to stop that hopelessness or extreme fear in the market.
People have just got so much averse to equities.
I think this not sustainable,” Veliyath said.
He said that investors should look at bigger picture.
You might have lost 30-40 per cent money in last one year, but that does not matter, he said, adding that one should not forget India’s real growth story.
“We are at $2,000 per capita income at this point against $1,200-1,300 a few years ago.
This is a trigger point.
If you compare, China is now $10,000 and once we go to some $2,500 or near $3,000 per capita, that is going to make a huge positive impact on the consumption story, especially discretionary consumption,” he said.
It is not a time to get depressed or feel the pain.
This is the time to look at the positives, he said.
“The India growth story is intact.
Our organic growth, whatever happens on the political side, is going to continue.
And this is very important.
I think the per capita income and the roadmap for the next, two, three, four years’ will give you a lot of energy to pick stocks in the market,” Veliyath said.
