At a time when markets are high it makes sense to be careful now than regret later
Master investor Nemish Shah, co-founder and, currently, director of Enam Holdings, is a man of few words. So when he says this is among the best markets situations that he has seen in his investing career, it is a measured assessment of sentiment. And that, in turn, is rooted in facts. Oil prices are down to $45 a barrel: This, he says, will reduce the import bill, thus positively impacting India’s current account deficit. Bond yields are already factoring in interest rate cuts and, over the last year, the equity market is up by 30 percent. For the sceptics, the message seems to be: Underestimating India’s growth potential is incorrect when the global economy and the domestic market indicate buoyancy. Shah’s optimism, however, is balanced by the caution displayed by the various fund managers we interviewed.
(This story appears in the 06 February, 2015 issue of Forbes India. To visit our Archives, click here.)