- Nikhil Kamath is 90% invested in equities, citing attractive valuations in India
- Nifty 50 is down 13.24% in 2026, lagging behind major global markets this year
- Kamath finds quality banks, IT, and pharma stocks at 11-13 times earnings valuations
Zerodha co-founder Nikhil Kamath has said he is 90% invested in equities, calling current valuations in many Indian sectors among the most attractive he can remember outside the COVID crash.
“I am 90% allocated to the equity markets. I think valuations are great today in many, many sectors,” Kamath said at the NDTV World Summit.
His remarks come in a tough year for Indian stocks. The Nifty 50 is down 13.24% in 2026 so far, while South Korea's Kospi has gained 28.40% and the S&P 500 is up 13.10%. Over the past year, the Nifty has ranked second-last among 18 major markets, ahead only of Indonesia, according to Bloomberg data. Indonesia's Jakarta Composite had fallen about 43% this year as of October 16, after MSCI warned it could downgrade the country's market status.
Kamath said he is able to buy quality banks, IT services and pharma companies at 11-13 times earnings. “Barring COVID, I can't remember another time where I've had opportunities like that,” he said.
Kamath said India has changed “so much for the better” since he started working a little over 20 years ago. He acknowledged the country could hit “some kind of a blip short term because of AI and not having the risk capital to attempt it,” but said, “that doesn't make me look at India pessimistically.” “India is doing well,” he added.
ALSO READ: Is AI A Bubble? Nikhil Kamath Points To $800-Billion Gap, Sees Short-Term Blip For India
Market Needs To Grow
Kamath said India's stock market still has a long way to go, with equity investor penetration below 5%. The country needs “hundreds” of brokers like Zerodha and Groww, along with more traders, investors and speculators, he said.
Large stock markets where it is easy to list companies and raise capital have been “synonymous with developed economies,” he added.
From GDP To GDP Per Person
Kamath said the next challenge is turning India's GDP growth into growth in GDP per person, and pointed to an idea being tried in the US, where children are given a stake in the S&P 500 at birth.
Research suggests a child's psychology changes if they know a small pool of money is waiting for them at 18, he said, giving them capital to start something and a reason to work harder. “Things like that should probably be attempted,” Kamath said.
ALSO READ: Tax Income, Not Transactions: Nikhil Kamath's Fix For F&O Traders
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.