To unlock India’s potential, why curb on risky derivatives, investing in passive funds are the ways to go, explains Dinesh Thakkar of Angel One
Do you believe the market has borrowed returns from the near future or is there enough left on the table?
Markets always tend to price themselves based on the expectations of future growth. When we evaluate the current valuations through the lens of anticipated economic growth, small- and mid-cap stocks appear to be trading at stretched levels compared to their historical averages. On the brighter side, large-cap stocks seem more resilient, backed by stronger growth metrics and better return on equity.
The ongoing structural shifts in the Indian economy—increasing wealth in India’s tier 2 and smaller cities, growing financialisation of savings, wider adoption of new asset classes and accelerating digital transformation—are powerful tailwinds for India’s long-term growth story. Further, India’s demographic dividend, with a young and expanding workforce, positions the economy for sustained growth over the next 25 years. Despite the recent tepid growth due to curtailed government spending, revival in public and private investments could drive GDP growth at a healthy 6.5–7% annually. At Angel One, we firmly believe that the nation’s economic fundamentals remain strong. The long-term growth story is very much intact. As a nation, we have only just begun to unlock our potential.
You have decided to move away from the zero brokerage model to adjust to new business realities. What makes you confident this is the right path?
Our decision to move away from the zero brokerage model reflects our commitment to keep up with
