India s benchmark indexes
Nifty 50 and Sensex rose on Thursday, led by energy stocks and
tracking a rebound in their Asian peers, as investors awaited
key U.S. inflation reading for cues on interest.
“Despite stocks having risen by 3x or 5x, PSU stocks are still trading at single digit multiples. The biggest point, if I can make out, is that I do not think this rally in PSUs is a flash in the pan, that this year there has been a rally and next year everything will fizzle out, and they will go back to the old valuations. I do not see that happening.”
The rally helped IT stocks shed the tag of underperformers as the Nifty IT indexs 1-year gains jumped to 24%, outclassing all its sectoral peers. The broader Niftys 12-month gains stand at 16%.
“The underlying US economy, despite some slowdown, continues to remain very strong, which is good for IT as a sector. Secondly, from whatever I read and my conversation with a lot of IT companies here and some global experts, people believe that with the evolution of artificial intelligence, the impact on IT industry and more broadly on the world as a whole will be as profound as it happened with internet way back in early 90s and mid-90s.”
“I have never been short of ideas, but have always been short of money to invest. India is a paradise for growth investors. At any point of time, there are more ideas than the capital available. If you invest in the right companies in any scenario in India, you can make money.”