Even as the stock markets remain volatile on the back of factors such as the political environment and global crude prices, ace investor Porinju Veliyath says that India is not having a bear market, and will not have one in the near future. “There are underpriced and overpriced stocks everyday in the market. Markets have come up every time there has been a sentiment driven fall. We are not in a bear market,” ace investor Porinju Veliyath said in an interview with ET Now.
Explaining what exactly constitutes a bear market, Porinju explained by taking Japan’s example. “In 1989, in on December 29th the Japanese Index Nikkei had gone to 39,560. Today, after three decades its at 22,500. This is called a bear market. This might have happened in the 1930’s in the United States, you would have heard in history,” he said. But will India ever have such a scenario? “Just 3% of the world’s wealth is in India. We are too small a base and we talk about bear market?
In the same interview, Porinju also called for more reforms, and said that India can grow at 14% in the next 5 years. “About 17% of the world’s people live in India sharing 3% wealth. This is not sustainable. We have to find the pain of reforms,” hoe told the channel. He also called for more collaboration among political parties.
“I have my political bias due to the economy. Being a good citizen. India can grow at 13-14% for awhile, at least 5 years. Our political parties should get together for the nation, not to defeat Narendra Modi. We need credible and capable leaders supported by all political parties. We can grow to $5 trillion in 5 years. We have inherited the richest economies in the world structurally and potentially,” he noted.