Vallabh Bhansali On BJP Victory & Market Outlook For 2024

NDTV Profit

Market Veteran & #EnamHoldings Chairman Vallabh Bhansali shares his views on #BJP's victory in Hindi Heartland & his market outlook ahead of 2024 general elections. #BQLive #ElectionResults

Transcript

00:00 Thanks so much for tuning in to this very special conversation with a very special voice.

00:03 Mr. Vallabh Bansali, founder and chairman of Enam Holdings, joins us as the market gives

00:07 a thumbs up to the election verdict that came in over the weekend.

00:10 Mr. Bansali, thank you so much for taking the time out.

00:13 What do you make of this, sir?

00:16 Is this something that will give a boost to the confidence of investors because there

00:20 is a belief that the political continuity will ensue come 2024?

00:27 I think that's only an additional factor.

00:29 The market has been having such a momentum.

00:33 And fortunately, on the horizon also, you see more silver linings than dark clouds.

00:39 So the market is already on a high.

00:41 This will add to that high rather than create a new momentum for long term.

00:47 But I think the good news in this is that what is the citizen thinking?

00:52 For a long time, the national parties have been trying to persuade voters to look at

00:58 national policies and the government seems to have now succeeded more than ever before

01:04 in raising aspiration.

01:06 I think this is not understood well enough always.

01:10 I remember way back in '94, Mr. Narayan Murthy, architect of what reforms should mean for

01:16 private sector, he said in a speech that, oh, India needs to raise its aspirations.

01:22 I don't think anyone understood in the country.

01:24 So people went back, political parties tried to play identity politics, which was remaining

01:29 the same rather than raise aspiration.

01:33 So therefore, elections of this kind, that in four states where national parties win,

01:38 there seems to be a vote that, OK, we want to move away from identity towards aspiration.

01:44 And therefore, the success of the infrastructure, success in sport, identification with a common

01:49 man, all of that are helping probably the common man, the poor man, the left out man

01:58 to think more nationally, more center stage.

02:01 And I've been, in my own way, a very keen observer of the social transformation.

02:06 I see that being asserted here because particularly MP, Satish Garg, more than Rajasthan, where

02:13 flip-flop has been the tradition.

02:15 In these two states, which has tribals and which has more diversified ways, this kind

02:21 of result definitely indicates something that what Mr. Modi has been trying to say that,

02:27 you know, there's only poverty, there's only one class poverty and there is only one hope

02:32 growth.

02:33 And therefore, in my judgment, I feel very enthused about that as a long term trend.

02:40 Wow.

02:41 Interesting points.

02:42 And I think in Telangana, the tribal belt had some fairly significant gains for Mr.

02:48 Modi's campaigns as well.

02:49 Vallabhbhai, just a quick question.

02:51 Do you reckon there will be a degree of investors, long term investors, pension funds, etc.,

02:57 who probably think of this in the same fashion that you are and will probably look at the

03:02 potential that the country brings over a period of 10, 15, 20 years?

03:06 And not that they are not there already, but they might make a larger allocation to what

03:10 is arguably a strong economy currently?

03:13 A lot of them are not here.

03:15 Or they are not here in a very insignificant manner.

03:19 Therefore, I think what the bigger news for them is, this political stability helps, but

03:24 some of the long term players and they look at the long term trends more, you know, more

03:29 keenly, are what is happening on the interest rate, how India managed this whole inflation

03:34 thing.

03:35 And now that, you know, Powell has changed his commentary, what impact it will have,

03:39 inclusion of, you know, Indian sovereign bonds in global indices.

03:43 We have entry in one, but we need multiple and all of them seem to be on guard.

03:49 And what has been happening on infrastructure, which was a key issue for India that, you

03:55 know, China had built that.

03:57 Now we are building that great time.

03:59 We are becoming just the beginning of what is called a product nation.

04:03 So we're still techno coolies in a large sense.

04:06 We are success on pages, on some defense equipment, some 5G, 4G, etc.

04:12 I think this value adding nation, value adding economy is just beginning to take shape.

04:19 And there are people, you know, who are working very hard.

04:22 But how do we move from 15, 20 trillion dollar economy, which we will, you know, probably

04:27 achieve partly on the basis of this demographic, you know, demographic growth, the demographic

04:33 advantage.

04:34 We are looking at a dividend situation, but can soon become.

04:36 I think those trends look fantastic, that interest rates here are poised to go down.

04:43 And that means a big, big thing for the country and the market.

04:48 Got it.

04:49 Sir, I have one final question.

04:50 I know you're short of time, but one final question, because you think such long term,

04:53 you think decades, whereas people think of days and weeks when it comes to investing,

04:57 just trying to understand, does this result and all that's happened in the last 12 to

05:02 18 to 24 months, which you alluded to, make you think very constructively of the next

05:06 5-10 years?

05:07 And if so, how do you think about it when you're bringing the investing lens into the

05:13 picture, sir?

05:14 See, investing has to be long term.

05:18 Which means, you know, I mean, we know from our own life to get the degree, to get, you

05:21 know, qualified for anything, job to get mature on any job, it takes time.

05:26 Even in a complex country, fighting so many centuries of subjugation, it takes time.

05:33 But the very concerted effort, I mean, today is not the time to talk about, you know, what

05:37 does nation building mean, which is being attempted by Modi ji, which is now, you know,

05:43 playing out.

05:44 And therefore, when we look at that, I mean, there's no question of looking at anything

05:48 less than 5-10 years.

05:50 So I think all that looks very good.

05:52 And I hope that we move away from this backwardness, you know, the pride in being a backward.

05:59 That breaks.

06:01 And what you're seeing on the sports field, I saw, I met an archer who had no arms.

06:08 She's of course a Paralympic champion.

06:11 But how, what inspiration this creates in, you know, large sections of society.

06:16 And when they feel that, okay, we are provided for food, we are provided for health to some

06:20 extent, provided for pension, if you care.

06:23 I think all these things will, in a cultured country like India, when those aspirations

06:28 rise, not only demand will rise, but creativity will rise and therefore our ability to add

06:33 value and add meaning to the whole world will rise.

06:36 So I really feel very bullish.

06:38 Great.

06:39 On that note, we'll let you go.

06:40 Thanks so much, Mr. Bansali for taking the time out today.

06:42 Pleasure.

06:43 Thank you.

06:44 And viewers, thanks for tuning in.

06:45 [MUSIC]

06:53 [BLANK_AUDIO]

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