Advent looking to deploy $5 to $10 billion in India over the next five years

“If you look at the kind of companies where the stocks are going up even more are the ones that are not even covered by many research houses. So the stocks that are the smaller ones, not in any coverage by the sell side are still seeing a lot of rally. So clearly, there is some irrationality.”

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Porinju Veliyath believes that it will not be easy to create alpha investing in the well-known largecap companies, but one can still invest in them. He continues to believe in the India story, and that India's era is just starting, which is where China was in 2007. Veliyath suggests that there are many upcoming midcap companies that can offer great opportunities for the investing community to create alpha, and further states that many state PSUs, if better managed, could become multi-baggers.

In the developed world, market panic is a function of reset in interest rates. Not so long ago, interest rates were near zero, with more than $17 trillion of debt securities having zero or negative coupon. Their markets are getting adjusted to the fact that interest rates can remain higher and for a longer period of time. In the European context, some of the uncertainty could be linked to the Russia-Ukraine situation as well. In the Indian context, we were trading at around our average historical valuations.

Exporters in India have expressed concerns about the slow growth of labour-intensive exports such as garments, gems and jewellery, marine products, and plastics compared to countries like Bangladesh, China, and Vietnam. The Federation of Indian Export Organisations (FIEO) analyzed the sector-wise export performance over the past five years and found that India's market share in labour-intensive sectors has been declining. However, technology-driven sectors like machinery, auto components, electrical and electronics goods have seen a significant surge in global demand.

“There is a certainty in India that one allows one to think from a 15-20 year perspective. There is a kind of money which we are expecting. I will be personally very surprised that after May election, political instability, if $100 billion does not come in India through bonds and equity. Normally $15-20 billion comes.”

The former RBI top executive said that India needs to change the mindset and acknowledge the growth it needs to be able to create more jobs.

COO Jonathan D Gray said a merger and acquisition deal takes up to two years to go through in India, while the same in its home market of the US gets done in weeks

​In my viewpoint, since they are heavyweights on the index and they represent the indices, of course, so in such situation when they start going up because of the higher amount of money coming into the system as well I would think that indices would naturally go up.

While some see the indices rising 25% in the next two years, others say the Nifty could touch 20,000 by the end of FY24.