Mr. Damani and Mr Choksey are among the most respected names in the Indian capital markets and understand very clearly how this entire “dream sequence” is being financed. Mr. Damani is well known in the media and is a regular on CNBC’s www.moneycontrol.com is considered the master of market fundamental analysis in the industry.
The session on the ‘Role of Capital Markets in transforming “The India Story”‘ provided the students of SPJIMR with a keen insight into the capital markets. With the whole world talking about “The India Story” and “The Asian Century”, news of takeovers, mergers and acquisitions and the vast business opportunities that India offers this discussion was very lively and enlightening. The capital Market provides the link between the real and the financial world and turns the savings of the people into investments. The economy is on a boom spree with the Capital Market on its longest expansion spell and the Sensex reaching “new highs” and adding to the excitement.
Mr Damani spoke about the road ahead in the Indian equity markets with innumerable aspirations are possibilities. He said that the four-fold aims of the Indian people comprises of democracy, demographics, digitization and choosing to create our own destiny. He spoke at length on the history of the capital markets and the famous bull runs right from the Dow Jones of the roaring twenties, the Nikkei during the seventies right up to the late 80’s, the Nasdaq during the nineties and our very own sensex during the early 90’s and the latest bull run where we have seen the market reach in an intraday high of 14000.
Stressing on the fact that it is more important to pick ones stock based on ones comfort with that company, understanding of the industry etc., he said that we should not just look at the markets. Such a strategy shall ensure returns even when the markets tank. The China versus India chase is akin to the Hare v/s Tortoise race. He reiterated that by 2020 globalization is likely to take on much more of a ‘non-Western’ face and that India and China probably will be among the economic heavyweights or haves.
Mr.Choksey spoke at length on the development of the capital markets in India and compared our model of developing the Capital Markets first before the development of agriculture and infrastructure unlike the Chinese model who are now looking at development of Financial Markets. He also spoke of the various measures like the digitization of shares, electronic trading, role of NSE, removal of long term capital gains on securities etc: He also identified Agriculture, SEZ’s and the Real Estate sectors for sustaining the growth in the economy.
India possesses working capital markets and world-class firms in some important high-tech sectors, which China has yet to achieve. While the market has recovered from May tsunami, the focus is still on stocks and not the markets. Economy and earnings seem on track as seen by the euphoria on Jan-Apr 1992. Buying cheap, patience, compounding are the keys to the kingdom of “financial freedom.” The discussion with the students of SPJIMR, saw the finance wizards not let Mr Damani rest easy as they not only quizzed him on the future of the Bull Run in the market and its sustainability but also expected expert advice on becoming the next Warren Buffets.