Best ‘asana’ in market is to stay invested for a long term growth story: Nilesh Shah

“Well, if there is no asana, we can always create one. And I think the best asana in the market is, stay invested for a long term growth story,” says Nilesh Shah, MD, Kotak AMC.

So which is one yoga asana which represents the market ki chaal?
So in some sense for investors, it is the shavasana where you are just sitting doing nothing and enjoying the ride. And for traders, it is the sirsasana if you are short on the market. Is there something called Lakshmi asana which you would like to share with us?
Well, if there is no asana, we can always create one. And I think the best asana in the market is, stay invested for a long term growth story. You remember in 1990, we were about $300 billion economy and around the same market cap. Today, three decades down the line, we are 12 times higher in terms of GDP and similarly in terms of US dollar terms market cap. The same trend will happen over next 15, 20, 30 years so just stay invested. Let the rising tide lift your boat.

India was the one to export yoga to the world as well and it has become a global trend and it seems for markets as well, there is a lot of interest and attractiveness that India holds for their portfolio?
Undoubtedly. There are three Gs available in India; growth better than peer group, governance standards which are better than peer group which reassures investors that if you make money it will stay with you, and finally the green transformation. We are the lowest per capita polluter in the world. And despite that, we are taking concrete steps on renewable energy, green hydrogen and carbon emission. So where will you get this three G of growth, governance and green. And last two decades, India has delivered one and a half times more return than comparable peer group. In fact, the future looks even brighter. So my feeling is that yes, foreigners will be a buyer in Indian market. There will be bigger buyers at lower levels. There will be probably little less buyer at higher levels but there will be a buyer.

This comes in a very timely manner when the Prime Minister is also to his US visit as well. Which are the sectors that you believe stand to gain the most is it defence? Is it manufacturing? Is it technology?
Always it is the promoter which makes the difference. A good promoter in a bad sector also can protect value or create value. But a bad promoter in a good sector will definitely destroy value over a period of time. But within that caveat of choosing right promoter, two things which should do well.

Manufacturing in India thanks to China plus One where companies are now looking to outsource to India in order to diversify out of China. Companies which are catering to local as well as global market should benefit out of this.

What we saw in chemical sector over last seven-eight years is a similar thing where ups and downs will get replicated in many other manufacturing sectors.

The second sector where I am bullish is healthcare ecosystem. More than one-third of doctors in US and UK are Indian origin, 45% of medicines consume by volume in America is made in India. Our healthcare delivery cost is far more competitive compared to western world than even our IT services cost. Put all these things together in an aging world over a period of time we will see a healthcare company doing onsite and offsite delivery, employing lakhs of medical professionals and providing healthcare benefits, healthcare coverage to India as well as abroad.

So healthcare and manufacturing, these are two sectors where we could see multi-decadal growth opportunity.