BSE building at Dalal Street (File image/Wikimedia Commons)
The Indian market is poised for growth, and every asset class is expected to cross a new level in the years to come, Rare Group chief executive officer Utpal Sheth said on October 16, while speaking at the 12th annual international convention hosted by the Association of National Exchanges Members of India (ANMI) in Mumbai.
“Public or private, debt or equity - every asset class of the Indian market will find a new level over coming years. We are privileged to be participating in India at this time," Sheth said, on being asked during a panel discussion about the developing equity cult in the Indian market.
The panel, which was moderated by CNBC TV-18's stocks editor Anuj Singhal, also included Helios Capital Management founder and fund manager Samir Arora and Avenue Supermarts chairman Ramesh Damani.
Sheth, during the discussion, recalled Rakesh Jhunjhunwala, the late stock market veteran and founder of Rare Group. Quoting the ace investor, he said, "The biggest risk in investing in India is not investing in India".
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Most investors commit the mistake of "being afraid of mistakes", Sheth, who is also a senior partner at Rare Group, added.
However, he noted that not differentiating "between gorillas and monkeys" was his biggest mistake as an investor.
Gorilla is a term used to refer to companies that dominate a particular industry segment, but do not hold a monopoly.
“We might say 'buy right hold tight', but it applies only when you are holding onto gorillas. These are the companies with strong management teams, extremely strong business models, and leadership. But if the company is not a gorilla, and you are still holding it, then the opportunity cost is high,” Sheth added.
Damani also sounded positive about the prospects of the Indian market and particularly mentioned the overall optimism among retail investors. He believes that retail investors have "come a long way" and are eyeing a "multi-year bull run" going forward.
According to Arora, there is a need for more capital instead of a surge in the number of investors.
"Increasing the number of investors increases the depth of the market, maybe reduces the volatility, but it doesn’t necessarily increase the returns that an investor might expect," he said during the panel discussion, on being asked about the investment opportunities.
Arora, however, noted that Indian returns are "the highest in the world".
"If you see for the last 25 years, Indian returns have already been the highest in the world in dollar terms. So Indian market in dollar terms is up some 10.5, 11 percent per annum for 25 years. Whereas Warren Buffett is up some 9 percent, S&P is up 8 percent and China is up 1 percent," he further said.Indian market's all asset classes to reach new levels in coming years, says Rare Group's Utpal Sheth - Moneycontrol
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