INSUBCONTINENT EXCLUSIVE:
Benchmark Nifty is no longer a proxy for India's economic growth, said renowned money manager Saurabh Mukherjea.
Founder of Marcellus
earnings expansion of 8 per cent during the last 10 years
have gone up by 12 per cent annually
The Nifty has given an annualised return of 14 per cent over the past 10 years
thereof) of the Nifty is to look at the return from investing in the underlying 50 stocks which were in the Nifty 10 years ago
According to the veteran fund manager, the increasing disconnect suggests key drivers of the Indian economy have gone missing in the listed
He gave examples of taxi aggregators (Ola, Uber), online retailers (Flipkart, Amazon), electronics goods manufacturers, car manufacturers
other than Maruti, hotels other than Taj, Oberoi and Lemontree and the like which are no longer in the listed market
He reasoned that these companies can access capital at low cost without entering the stock market which means the stock market does not
reflect their contribution to GDP
better than their Indian counterparts of the Nifty
the Nifty, it also suggests that Indian investors should consider investing in a portfolio of global companies who dominate specific
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