Indian Markets Could Rise 30% in 2 Years: Madhav Dhar

NDTV.com

13 Dec 2015, 11:33 AM IST

This is a good time for people to enter the market who may have stayed away for the last one year, Mr Dhar said.

Indian markets could rise as much as 30 per cent in two years, Madhav Dhar, managing partner of GTI Capital, told NDTV.

"Indian markets could be up 30 per cent in two years, that's mainly because earnings could be up 30 per cent in two years," Mr Dhar said. (Watch)

This is a good time for people to enter the market who may have stayed away for the last one year, he said.

"Markets are down 11-12 per cent in dollar terms in the last year, prices are lower, we are on the verge of the US Fed hike, GST looks like it is actually going to go through."

If stock prices drop, investors should be more aggressive, Mr Dhar advised.

Mr Dhar said he is optimistic about India's economic growth over the course of the next year.

"I have little doubt that India is reaccelerating. I have greater confidence that the economic reform agenda is back in front of the politicians."

As far as the imminent US Fed rate hike is concerned, Mr Dhar opined that emerging markets like India will not be impacted.

"In the end when you are coming out of deflation the growth dynamics matters much more to equity prices than psychological compression that higher interest rates. I am willing to bet this time the growth dynamic reaccelerating will be more positive to emerging markets than it has been in the past cycles of interest rate hikes."

This would be the first time since 1941 US rates are going to rise after being flat for seven years, Mr Dhar pointed out.

"I am willing to bet that over the next three years emerging markets will dramatically outperform OECD."

OECD or the Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries, founded in 1961 to stimulate economic progress and world trade.

Stock Bets
Mr Dhar likes the banking space and his bets are on SBI and ICICI Bank. "SBI is down a lot. If market does 15 per cent they could do 20 per cent." ICICI Bank also has come down a lot and that broad area can also do well, he added.