It is hard to predict the next 1,000 points on the Indian stock index, according to veteran investor and member of the Bombay Stock Exchange, Ramesh Damani. However, the next 20% on the index is surely on the higher side, he said.
“I think it’s a great time to be in India and invest in equities, as the next 10 years look as promising as the great run we have had in the last 30 years,” Damani told BQ Prime in an exclusive interaction on the occasion of the Muhurat Trading session for Samvat 2080.
India’s benchmark stock indices ended the Diwali special one-hour Muhurat trading session on a higher note, with the S&P BSE Sensex ending above the 65,200 mark and the NSE Nifty 50 scaling 19,500 during the trading session
The S&P BSE Sensex closed 355 points, or 0.55%, higher at 65,259.45, while the NSE Nifty 50 gained 100 points, or 0.52%, to end at 19,525.55.
“When I started, the index was at 1,000, and now it’s over 60,000 … In between, everything that’s known to mankind, from the Kargil War and financial crisis to global warming, has happened and yet the index finds its way higher,” Damani said. Investors should remain invested in “high-quality businesses” to gain from the long-term trend despite the near-term volatility in the form of inflation, geopolitical headwinds or elections, he said.
Damani, a member of the Bombay Stock Exchange, believes the leaders of the bull market always change. The leadership, he said, is with the public sector stocks. However, these are not banks, defense or rail stocks—a key theme that Damani identified earlier. He now bets on the logistics sector.
“There is a whole basket of PSU stocks that are still at a fairly modest multiple, so money can be put into those stocks,” he said. ” I would look at the port handlers, construction, shipping and logistics companies to benefit from the proposed India, Middle East, and Europe Economic Corridor.
His son, Ashok Damani, agrees. However, he likes sectors such as aerospace, defence and sports franchises.