Anil Singhvi, Managing Editor, Zee Business, says that the economy will be strong for the next five to six years and has a potential for it. During a candid radio podcast, 'Kadak Currency’, with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Singhvi said a huge bullishness is visible in the MidCap and SmallCap segments for the next two weeks. So, people can invest in good quality MidCap and SmallCap shares of the cash market.

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RJ Salil started the podcast, 'Kadak Currency' by asking about how the going year has been as stock markets have recovered well in the last two weeks and all the indices have recovered well. So, how the market has been this year in comparison to the last year? Singhvi said, there is no complaint, how better the market can be from this. It has created lifetime highs, not just once but many times and it has also provided a chance to those who have missed. Nifty has corrected almost by 2,000 points from the top. So, it is on both the coasts, those who invested earlier are still sitting on money and at good profits and a chance is being created for those who missed this buzz. I am sure that there are great chances in this market for both kinds of people. Accordingly, the year has been quite good for the investors.

In his next question, RJ Salil said, a lot of questions are being raised on banks about their privatisation. So, should the public sector banks be privatised? The banks have been a very important part in the recovery of India including reports that claim that India's recovery has been better than other South Eastern Asian Nations? Mr Singhvi in his reply said both things should be there. On one hand, you need private banks to get better banking services as well as advanced technology. On the other hand, if you want penetration of banks in small areas and villages to serve the common man with banking services till the last mile then public sector banks/government banks are needed, as private banks will not do so as they cannot make money there. So, both have their own importance and from that perspective having 100% private banks or 100% public banks is wrong. The mix that we have right now is quite good. Now, the public sector banks that are making less profit or have some issues in their management should be merged with strong banks so that their presence is strengthened and they can work in a better manner and it is also happening. So, the mix of the two is good and there is an equal requirement for both private sector banks as well as public sector banks.

Continuing the podcast further, RJ Salil said the government has talked about insurance of Rs 5 lakh on deposits in banks. Does it mean that just Rs 5 lakh will be insured even for a person who has made a fixed deposit (FD) of Rs 30-40 lakhs or more? In his reply, Singhvi said, 'Yes'. If you have an FD in any bank or saving bank or current account or recurring bank deposit account or some other account, which it fails to operate or gets into some trouble (may God not make this happen) then an amount of Rs 5 lakhs per person in any account clubbing each together is guaranteed. Earlier, it used to be Rs 1 lakh, which has been increased to Rs 5 lakh. This means if a bank fails then you will have a risk for any amount above Rs 5 lakhs, however, you will get a sum up to Rs 5 lakh from the government.

To which RJ Salil said, it is quite risky as the money of many corporate housing societies that goes to these accounts is quite more than it and many times for half a per cent extra they move to cooperative banks. Is there no demarcation or bifurcation for individuals and institutions? Mr Singhvi said it should be there and I have also requested this from the RBI Governor. It should be like insurance where either the bank will take insurance on the kind of deposits it is making or as an individual investor I should be provided with a facility where I can take insurance on my investment, where the insurance company will be liable to pay back my investments in case the bank fails. I am sure that it will also happen maybe soon or sometime in the future. But, such a facility should be available in which the banks are taking deposits, so, they should have insurance for that amount or we should have a facility to insure it. But, we are moving in the right direction at least it has been increased to Rs 5 lakh.

After this, RJ Salil said our industrial numbers have been better compared to the last year, although you can't compare it with the last year as a lot of movement was not happening then, but this year, we are better prepared for CORONA and its variants. Having an eye on whatsoever is going across the world, do you think that India can be a hotspot in the next six months to a year at a time when China is also being alienated? To which Mr Singhvi said, 100%, it will happen. I, generally, say that these rating agencies are like Mumbai Police in Bollywood movies, i.e., police reach at the end after the hero does all the work. The same is the case of the rating agencies as after everything has happened, it says the ratings will be downgraded as things have turned bad or ratings will be upgraded when things have already improved. Whenever the rating agency comes in a bad market and downgrades, then have an understanding that the market has bottomed and when they upgrade the rating in a good market, it seems that everything is fine or the market will be on a top. So, the market reacts to things before the rating agencies. As far as the next six months is concerned, the chances that the economy will remain strong for the next six months is negligible. I think the economy will remain quite strong for the next six years, its potential is tremendous. That is, if we will leave six weeks, six months and take a view of the next six years, then we have the next six years of India. It does not mean that the six weeks or months is getting bad. I am just providing a larger perspective as we haven't seen anything yet. The kind of earning upgrades and the earnings growth of the companies we are getting and the kind of investment people are making and the way the market is improving will provide its benefit, meanwhile, we will get small shocks on the way. But the economy seems to be very strong for the next five to six years.  

In his next question, RJ Salil asked about an investment avenue for senior citizens - as they have a certain amount either the money they get from the PPF or some insurance - where their hard-earned money will remain safe and they can get max to max returns on these investments? Mr Singhvi in his reply to the question said, actually, it is a very difficult question, unfortunately, I do not have any specific and good answer to it. Because the problem is that the interest rates are at the lowest and if you want to be secured by investing it in the bank's fixed deposits (FD) then you will get fewer returns and after deduction of the tax, you will get almost nothing. But, if you are putting your money in the banks then I would like to request to the senior citizens to not invest more than Rs 5 lakhs in a bank so that the insurance factor will work. If you invest in debt mutual funds then you can put some part of your money in it. If you are a well-to-do retired person and have retired with a good corpus and have good money then you can invest in MIPs or invest 90% in debt and the remaining 10% in equity. If you have risk-taking capability and you will get a slight equity portion then only you can maximize your returns otherwise if you will stay in fixed incomes or debt then it would be hard to maximize the returns. The biggest problem for the retired people at this point of time is that if you think that when I will retire with savings up to Rs 1 crore then I will get interest income of Rs 12-15 lakhs per annum but hardly they are getting Rs 3-4 lakhs. So, retired people, if they have risk-taking capabilities, should add some equity portion for five to ten years. Suppose, you are investing a 10% portion of your savings in equity and if equity return triples or turns four times in 10 years then your return will be slightly compensated there.

In his last question of the podcast, 'Kadak Currency' RJ Salil asked Mr Singhvi's stock recommendations for the next two weeks? Mr Singhvi said, ups and downs will be there in the market for the next two weeks as it is a year-end but expect bullishness, especially in MidCap and SmallCap shares where your listeners and my audience are more interested. There will be a bullishness in the segment in the next two weeks. There is a good recovery in the index and after reaching these levels the indexes will try to stabilize themselves a bit. So, I believe, there will be tremendous action in good quality MidCap and SmallCap shares of the cash market for the next two weeks. You can invest there.