Private sector banks poised to power India's growth: Manishi Raychaudhuri
«I have always been and I remain over the long term very positive on the private sector banking universe. India if it continues to grow at about, say, 7% to 7.5% over the long term, that growth will have to come from investments and consumption and it is the private sector banks which would be financing that growth,» says Manishi Raychaudhuri, Veteran Investor.
It has been an eventful week of sorts because you had so many events to watch out for, be it the US elections, be it the FOMC rate decision. Also, back home you had Diwali and you had to look at the Diwali sales, the auto sales numbers. Tell me, how are you reading all of these various signs that you are getting in from the markets? Firstly, let us talk about the US elections.
Manishi Raychaudhuri: That is possibly the most important development that the whole world has been waiting for, including financial asset investors, both equity and fixed income.
And the apprehension originally was that we would get a long drawn out result environment in the sense that it will be a very close call and the final results would not be quite available for a few days. But that has not come to a pass and we have a landslide victory for the Republicans, which is obviously a good outcome for US equities because that almost certainly leads to corporate tax cuts. It also leads to lower regulations in certain sectors like banks, for example.
But at the same time, it is not so good news for fixed income because it means that the fiscal deficit in the United States is going to
