Market surveillance | Aashish Somaiyaa CEO of White Oak Capital Management
On the stairs
When it comes to market levels, I’m not on the skeptical or cynical camp right now because as I’ve tried to point out before, I think after a series of false starts over the past seven-eight years, we are finally seeing a turnaround. The last time we experienced a serious economic recovery was when nominal gross domestic product (GDP) growth was in double digits and growth in corporate earnings per share (EPS) was also in double digits for one year. series of about four to five years. After that we had a series of disappointments but finally we got a fresh start.
A lot of things that happen are not just cyclical and I will use the very cliché word which is structural or about lasting changes. So there are a lot of things we’re not going to revert to pre-Covid habits or pre-Covid conditions. Whatever is happening in China and where India is on a relative basis – the way our reforms, the way we seize certain opportunities that can make India a preferred manufacturing base as well as a base export and the awareness has always been that this is a local market market, if you see the digital adaptation, if you see the adaptation of the capital market, one of the most Important things that happened in Covid was that, globally, the business cycles of all countries were reset to square one. I think business cycles have been reset, which has happened thanks to Covid, the world has become more united and in many ways we are not going to go back to the Covid front. There are a lot of things that have changed.
We can achieve returns in line with nominal GDP growth and since we are stock pickers hopefully do a little better.
On the technological space
We are very constructive throughout the space. The reason being that you have to be open-minded. I don’t think there are any rules that prohibit loss-making companies from generating positive cash flow in the future. So, whether it is consumer technologies, fintech, we are exposed to this sector and we are positively oriented there.