Vikas Khemani Says 'Twin Engines' Will Drive Massive Portfolios Flows In 2023
Money is made when you capture the long trend, invest money on that trend and stay invested, says Vikas Khemani.
As rates and U.S. dollar peak, overseas money will start flowing back into India, driving domestic markets. According to Vikas Khemani, founder of Carnelian Capital Advisors, that's started to play out.
Domestic benchmarks are scaling new highs as foreign investors turned net buyers in November after two months, pumping in Rs 36,239 into domestic equities. Return of overseas money will drive liquidity, and Indian corporate earnings are already improving, he said.
The "twin engines" of liquidity and earnings will drive massive portfolio flows in 2023, Khemani, founder of Carnelian Capital Advisors, told BQ Prime's Niraj Shah in an interview.
Key Themes
Almost all sectors are contributing to the growth, with the major constituents being banking, information and technology, auto and telecommunications, according to Khemani.
Khemani sees an more opportunity in banking stocks, aided by earnings, positive momentum and liquidity. "The banking sector has done well in 2022 and will continue to be on the same road; we have great quarters ahead of us.”
He is betting on manufacturing but advises investors to be patient. "Money is made when you capture the long trend and invest money on that trend and stay invested," he said.
India has not seen anything like the current business environment, according to Khemani. “There is a demand environment; there is a solid financial situation; and the cost of capital is cheap and almost comparable to the western world ... that is a big advantage.”