Zerodha co-founder Nikhil Kamath believes there is no party at Dalal Street and traders should tread with caution. Despite witnessing some recovery in the last few years, the mood of the market continues to not be great, according to the entrepreneur and investor.
“I don’t think there is a party. If you compare where we are today with October or November in 2021, we have gone from 18,500 to about 19,500 which when adjusted for inflation is not very much at all,” Kamath told Business Today.
He also said that the mood is mixed because markets are still expensive despite being above the historical average, and “earnings have not grown as much as people expected.”
He said, “People should be aware of the fact that they are trading at a slightly higher premium than we have historically and be cognizant about it.”
He shared that the only way to combat the current times is by diversifying one’s portfolio. “Having a lot of equity in your portfolio is one thing but adding these other elements (like gold) will make your portfolio tougher,” he concluded.
Kamath’s post on the online gaming industry including the opportunities attracted several eyeballs. In the same interview, Kamath expressed his deep interest in the online gaming sector. He believes that the gaming sector is on the rise and no other forms of content have shown such promise and growth.
He explained that the gaming sector is growing significantly faster than other forms of content. “The younger generation who are in their 20s now, or teenagers, seem a lot less enamoured by old-school content than I might have been in my generation.”
He further explained that it is the interactive form of content that will gain traction. Kamath added, “Interactive engagement with a feedback loop seems to be the way forward. For many reasons, I'm bullish on gaming and e-sports.”
Also Read: BYJU’S head of international business Cherian Thomas quits; to join US-based Impending Inc