Nikunj Dalmia:How to make money, that is what we all want to know. How to make money and how to invest for a bright future. Nilesh bhai has promised me that in this entire session, he will only use the word tip, not SIP. So, Nilesh bhai, how can one make money by not participating in SIP? Give us a tip.
Well as most of you will agree, India is a rising story. When you are giving me a low volley, and I was resisting not to hit it, but now I do not have a choice. Just invest in Kotak Mutual Fund, and that is it.
Nikunj Dalmia: Now, notice the word crazily undervalued and that is what I think we should focus on, that it is time to start doing treasure hunting in this kind of a market. So what we are at 18500 on the index, I think Nilesh bhai, is of the view that abhi toh party shuru hui hai. So, Nilesh bhai, party kyun shuru hui hai? Why do you think right now, the best is yet to come for the Indian markets? Because historically, we have seen economy and markets, they do not run together.
So let me give two answers, one lighter way, one serious. There is a small bank in Maharashtra called Shamrao Vithal Bank. There is a big, large bank called Silicon Valley Bank in the US. SVB is the 16th largest bank in America. A day has come when our Shamrao Vithal Bank has to say, when you talk about SVB going into bankruptcy that is that American bank, not the Indian bank. Aisa din aapne kabhi socha tha ki India mein aayega? So that is the lighter way in answer that is why you have to invest here. But on a serious note, the state from where I come, Maharashtra, today Maharashtra has a GDP equivalent to India’s GDP in 2005. In 17 years, Maharashtra has reached where India was yesterday. 2001, UP and Uttarakhand were combined. Today’s UP and Uttarakhand combined is where India was in 2001. And there are three other states, Tamil Nadu, Gujarat and Karnataka, they are today having that GDP which India had in 2000.
In about 20 years, these six states have reached where India was yesterday. Now, if all of us continue to work in similar fashion for next 20 years, these six states will create today’s five India. And then there are 20 other states which are also doing something. This is the journey of one India to five India in just six states. This is the journey of one India to multiple India in terms of GDP growth over next 20 years. This is the reason why you should invest.
Nikunj Dalmia: So I will ask a very basic question so that the audience can relate to it. Chris Wood on ET Now last week said that Sensex could be one lakh in next four to five years. Do you see that happening, Nilesh?
One thing I’ve learned. Don’t try and predict the market. More often than not, you will be wrong. But today, is one lakh Sensex looking unimaginable answer is no. And my request to this audience will be, just do not think about one lakh Sensex. Beyond that also, there is a much-much longer journey.
Nikunj Dalmia: Quick final answer, the most overrated sector and the most underrated sector.
The most underrated thing is management and governance.Underrated sector.
Sir, if you get a good promoter in the sector, it becomes gold. If you did not get, so the most underrated thing is management and governance. People do not really give too much respect for it. They will go and dabble in all kinds of companies where neither they know the management nor they believe there is governance and end up losing money.
If people start respecting management and governance chances of losing money in the stock market is very-very limited. The most overrated thing is to believe that there is a moat in the business. We are living in the world of disruption.
We need people who are paranoid. We need management and companies which are always worried about the disruption coming. You have to invest in companies which are disrupting their own business model rather than waiting for their competitor to come and disrupt. Governance disruption, ye do cheez sambhal lo you will make money in stock market.
