ValueQuest Investment's Ravi Dharamshi Positive About Markets — Know Why

ValueQuest Investment Advisors Founder and Chief Investment Officer Ravi Dharamshi believes that the outlook for markets from here on is bright. He said that after a long time, Indian markets' short-term, medium-term, and long-term — outlooks for all three timelines appear positive.

The steps the Government has taken along with the Reserve Bank of India's monetary policy tweaks and regulatory steps in the past six months have made the outlook positive, he said.

The Government of India rationalised the GST rate structure ahead of Diwali, which came into effect from September. Prior to this, the government gave tax incentives to boost consumption in the economy.

The RBI surprised the street with a jumbo 50-basis points rate cut in its June policy meeting. The central bank also eased regulatory norms.

Gold and silver outpaced equities in India. However, the precious metals are rising in tandem with global markets. US and other emerging markets have advanced significantly. "I won't read too much into, in terms of geopolitical situation, gold price rising," he said. 

Metals have done well. It's a board asset-class rally, he said.

India had a consolidation year because of the high valuation and policy gap. The credit growth fell to 9% from 15% primarily because the impulse went down in the economy. The RBI has taken enough steps to revive the impulse, Dharamshi said.

In last September, the credit growth revived to 11.5%, which suggests the growth outlook improving. Basically, the decline in credit growth has bottomed out, he said.