When requested whether or not international weak point may spill over into Indian markets, Srivastava dismissed the priority bluntly. “I could be Nostradamus or God, however I do know one factor for certain that the US is a powerful market, will stay a powerful market,” he mentioned, highlighting enhancing situations in Europe as nicely. He pointed to a significant regulatory shift within the area, including that “they’ve modified their ESG norms fully for the businesses… the woke tradition which was killing the European corporations is getting over.”
In keeping with him, the mix of a powerful U.S., a extra pragmatic Europe and the emergence of next-gen sectors—from quantum computing to AI—is forming a robust international tailwind. As he put it, “you do not want to really feel pessimistic in regards to the world market, consider me, you do not want to be.”
‘If you wish to play AI — simply put money into the US’
On whether or not Indian buyers can faucet into the AI increase from dwelling, Srivastava provided a characteristically easy reply: “Properly, you simply put money into US. Authorities permits you to do it, simply go and do it. It is so simple as that.”
He argued that India’s share of international market capitalisation — lower than 10% — makes home-biased portfolios inherently restricted. With newer avenues reminiscent of commodities, crypto and worldwide equities turning into extra accessible, he believes capital should stream outward, even when, as he put it, “it sounds unpatriotic and unbharatiya… however that’s the actuality of economic markets.”
Valuations: India’s ‘minefield’ vs international alternatives
The market veteran didn’t mince phrases on the valuation distinction between Indian shares and international giants. Evaluating costly homegrown retail names to cash-rich U.S. tech majors, he remarked: “We’re paying 90 PEs for ridiculous stuff on this nation… And we’re arguing with an organization which is producing billions of {dollars} in money in a worldwide monopoly on a PE of 30.”If India sees the introduction of a full-fledged short-selling framework, the implications could possibly be dramatic. Srivastava warned that “you will notice this aware cracking aside like no tomorrow” and predicted that valuations of “90% of the shares” might appropriate meaningfully.
The place India stands now
Regardless of his warning, Srivastava stays constructive on selective alternatives in India — supplied buyers keep nimble. Pointing to the surge in gold-loan lenders after regulatory modifications and the long-term power of the auto sector, he emphasised the significance of choosing the right pockets.
However he additionally provided a warning lesson in market behaviour. Recalling the acute Diwali premium on silver ETFs, he mentioned buyers should keep alert and “encash exuberance.”
Countering the idea that retail buyers are the one ones who make errors, he added sharply, “Mutual fund managers could be equally dumb,” citing a current case the place establishments purchased right into a inventory placement at ₹906, solely to see it crash to ₹620 inside weeks.
In his view, the following two years will separate disciplined buyers from these trapped by sky-high valuations. “We is not going to have these 90 PE corporations within the subsequent two years I can inform you that,” he mentioned, signalling a decisive shift forward for Indian equities.
