Ramesh Damani, a seasoned market investor and member of the Bombay Stock Exchange, shared his optimistic perspective on the recent bullish trend observed in the Indian equity markets.
Damani attributes the sustained growth of the Indian economy to the expansion of the formidable Indian middle class. He asserts that this demographic’s increasing disposable income is driving economic progress, shaping a narrative of long-term growth.
“The rising trend of demat accounts and mutual fund inflows reflects people’s inclination towards saving and investing surplus income,” observed Damani.
Speaking at Network18’s ‘Rising Bharat Summit 2024’ in New Delhi on March 19, Damani drew similarities between the bull run seen in India to that of Japan in the late 1960s, which saw the then third-world nation transform into one of the largest economies in the world.
Damani remains unfazed by the current market volatility, even amidst concerns about froth forming in the small and midcap segment. Confident in India’s long-term trajectory, he views the present volatility as merely a passing winter snowfall.
Aashish Agarwal, MD and country head of Jefferies India, likewise compared present-day India to the United States in the 1980s. He noted a similar expansion of the middle class driven by economic stability, resulting in a notable increase in household savings flowing into various asset classes.
Agarwal emphasised the significant potential for growth in equity investments within India’s household savings, pointing out that it currently comprises only about 5 percent of total savings, considerably less than the approximately 16 percent allocated to gold investments.
Agarwal believes that now is the opportune moment to be optimistic about India, particularly considering the potential to capture a larger portion of Indian household savings. He notes that foreign investors are also recognising the nation’s robust economic outlook and are returning, further bolstering this sentiment.
Shweta Jalan, managing partner and head of Advent International, highlighted India’s appealing demographic profile, boasting the world’s largest working-age population. She emphasised that these factors fuel a resilient consumption cycle, supported by government policies acting as pivotal drivers of growth for Indian businesses, according to Jalan.
With optimism arising from the growth triggers mentioned earlier, Jalan also believes that India is a multi-decade story from here on.
News18 Rising Bharat Summit is being held in New Delhi on March 19-20, 2024.
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