Sensex, Nifty at all-time high: Vijay Kedia, Dhirendra Kumar, Ashu Madan tells how to create wealth in this market

At a time when the benchmark equity indices BSE Sensex and NSE Nifty are hovering at their record high levels, market watchers believe that the momentum will be sustained on the back of the growing Indian economy and robust liquidity by domestic investors. The 30-share index Sensex closed at around 81,333 on July 26, while the 50-share Nifty index settled at 24,834.

Ashu Madan, Co-Head-Business Affiliate Group & MD, JM Financial Services said the market has a long way to go. He added that the market structure is so strong that you need a reason like COVID and the Russia-Ukraine war for the correction. “There is nothing to worry about for retailers. Liquidity is so strong and it will continue. One should invest for the long run and sector rotations will continue,” he said while addressing the India Today-Business Today Round Table 2024.

Renowned equity investor Vijay Kedia said that he has been bullish on the infrastructure sector for the last 3-4 years considering whatever the policy has been laid down by the government. The Mumbai-based investors added that there is euphoria in certain pockets of the market. “You should be selective while picking stocks,” Kedia said.

On the other hand, Dhirendra Kumar, CEO, Value Research said that one should not keep an annual view on assets. “Investors should keep their portfolio diversified across asset classes,” he said adding government behaviour has changed for public sector undertakings (PSU) in the last 5-10 years.

Kumar advised investors to keep a little bit of PSUs in their portfolio. However, the company should be growing and have a competitive advantage over others and should not be expensive in this market.

Asked which factors will lead to a sharp fall in the market? Madan said global unforeseen events may derail the market.

They hold mixed views on long-term capital gains (LTCG) Tax. The government in the Union Budget raised the LTCG tax rate to 12.5% from 10% earlier. Kedia said, “I am okay with 12.5% tax. I was expecting a 15%-20% tax rate.” Kumar said that capital gains tax has become a revenue source of income. “I dislike capital gains tax. It is a reflection of corporate earnings,” he said. Madan added that 10%-12.5% does not make much difference.

How to make money in this market? Kedia said don’t waste time on the budget debate. “Use your knowledge to identify a good stock. Have some courage to buy a reasonable quantity as per your worth and keep patience for a long time.” Kumar added that make sure that money you invest should not be needed for the long-term.