The opportunity due to volatile markets makes Bharat Shah feel “like a kid in a candy shop”.
“This is a fantastic opportunity to buy quality franchises at fair prices,” said the executive director of the wealth management firm ASK Group. Shah said that equity classes can create unparalleled long-term value, adding that he isn't surprised at the “routine” drop in the bourses every few years.
The benchmark S&P BSE Sensex dropped nearly 10 percent after rising to a record in August—spooked by a depreciating rupee and the crisis in the non-banking lending space due to the insolvent infrastructure group IL&FS. Yet, he believes that Indian economy is on the cusp of its best decade in the long run.
Shah said the turmoil was necessary as it helped investors to differentiate the good quality NBFCs from the bad. “Many NBFCs were indisciplined with poor quality assets and were reckless to have improper asset liability match,” he said. “Many were lending to poor quality borrowers.”
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