Budget could give trigger for investors to return: Porinju

Even though there is a slowdown for various other reasons in the recent past, our rising income level could be the 67784841 67784184 67772893 trigger point for consumption to boom, Porinju Veliyath, Founder & CEO, Equity Intelligence, tells ET Now.Edited excerpts:The farmer in you should be mighty excited as it seems a lot of sops coming in for farmers. But that aside, for a market which has been rough, we have underperformed 6% from the start of the year to now. What could the finance minister do today that will excite the market and lift off this pain and volatility?After such a huge drawdown in the mid and smallcaps in general, there is a big fear factor. I have never seen hopelessness like this in two, three decades. To that extent, even if our Nifty and Sensex are near the highs and reasonably outperforming global markets this last one year, for an average investor in India, there has been some kind of hopelessness which is very bad. I strongly believe market has all the reasons to bottom out and start going up. So despite any kind of suggestions or provisions in the budget, I feel even without waiting for the bigger event the general elections I think investors are going to come back to the market. Something will trigger that. It can be something, some provisions in the budget, which can at least stop that hopelessness or the extreme fear in the market. People have just got so much averse to equities. I feel investors should look at the big picture. You might have lost money -- 30%-40%-50% -- in the last one year from the peak, but it does not matter. This is not the time to forget India’s real growth story. We are at $2,000 per capita income to GDP at this point of time. We were only $1200-1300 a few years ago. This is a trigger point. Even though there is a slowdown for various other reasons in the recent past, this is a trigger point for consumption to boom. And at the same time, if you compare with China, China is now $10,000 and once we go to some $2,500 or near $3,000 per capita, that is going to make a huge positive impact on the consumption story, especially discretionary consumption. I feel this is not the time to get depressed or feeling the pain. This is the time to look positive that India growth story is intact, our organic growth whatever happens in the political side is going to continue. Seriously analyse the per capita income and the roadmap in the next, two, three, four years time. This will give you a lot of energy to pick stocks in the market.

from Economic Times http://bit.ly/2WyNTMT