In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Anand Rathi Group Chairman, Anand Rathi, said he expects the Indian markets to grow around 8-12 per cent in the current financial year 2022-23. He advised retail investors not to fear foreign investors selling pressure as India’s economy is strong and growing, in his chat. 

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However, he also listed the negatives that could act as a hurdle for the overall growth of the domestic markets as well as the Indian economy.  

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While listing positives, Anand Rathi Group Chairman said, the corporate performance and earnings are likely to be good, optimism in business is high, capacity utilization is rising, exports situation improving, goods and service tax (GST) collection is at a record high and almost all macro indicators are pointing towards growth trajectory of the economy eventually, aiding the markets.  

Considering this, Rathi expected the equity markets to grow around 8-12 per cent, however, the hindrance from negative aspects such as the Russia-Ukraine crisis, higher crude oil prices, rising commodity prices, and inflationary pressures may continue to dent in the market. 

He estimated that the negative points are time constraints, while the positive triggers will continue to help the markets grow further in a long-term perspective. 

On foreign institutional investors (FII), Rathi suggested investors not fear the sell-off. "FIIs’ perspective with respect to the domestic market is quite different and India’s economy is in good shape as compared to developed economies like the United States," said the expert.  

Besides the economy, the interest rates in India are cheaper than in the US, which saw a surge by around 1.5-2 per cent, and hence, the money gets easily moved from equity to debt, he added. 

Rathi posted confidence that the fund flows in the equity market will continue their momentum as interest in debts and traditional investments are not attractive, and the same can be seen in real estate sector too, despite improvement.  

Overcoming money problems, including NPA (Non-Performing Assets), banking and financial segment are at the sweet spot and may give good returns, their quarterly results are also improving and hence its top sectoral pick for Anand Rathi. 

With rising investment in capital goods, this is the other best pick Rathi advises investors to watch out for, and similarly, with government and private sector rising interest in infrastructure also makes it lucrative, the Anand Rathi group chairman said on his favourite themes.