Market leadership stays with PSUs; stay invested as the best is yet to come: Ramesh Damani

Ramesh Damani, Member of BSE, believes that the best time to invest in India is today, as the country is experiencing growth and development. He has always identified mega trends, such as cement shares and liberalization trends, and has been able to spot leadership in these bull markets.

The middle class, which started in England in the 18th-19th century, is shaping the world today, with 4 to 5 billion people in India. This middle class is defined as having a PPP purchasing power parity of about $12 per day, significantly above the poverty level of $2 a day. As India’s per capita has gone over $2,500, the middle class is demanding action on issues such as climate change, travel, education, and living standards.

There is much to be right in the market, with a significant fall in the last few days and the addition of 13 crore demat accounts in India. However, there is also a lesson to understand the difference between risk and volatility in the market. Risk is the choice of permanent loss of capital, while volatility is what happened yesterday and what will happen the day before yesterday.

The next 2,000 points on the Sensex can be up and down, but Damani believes that the next 20,000 points will be higher due to the unfolding demographics, digitization, and democracy taking root in India. There is a lot to be thankful for and looking forward to being optimistic over the next few years rather than being pessimistic.

Damani is fully invested in the market, with a focus on public sector stocks and the Modi government’s efforts to turn around the public sector. The debate over privatizing PSUs or unlocking value has receded, and companies should be well managed.