Which Sectors is India’s Bullish Market Running Towards?

During my interview with Sudhir Chowdhary of the Financial Express in August 2017, I emphasized my excitement about the catalyzing effect that GST & Jio are going to have on the $2.2 trillion Indian economy. That excitement has been materialized by AVF’s 4 out of 5 investments being a part of the consumer sector. In the medium to long term, I believe that this trend will continue with India’s continual digitization and Tier 2 and Tier 3 cities’ increasing access to maninstream products and services. It is therefore obvious that Artha Venture Fund (AVF) and Artha Group will continue to invest our time & money on consumer facing ideas in food, fintech, lending, etc.  

I formulated this thesis based on a combination of AVF Analyst’s research, my own research and a couple of interesting meetings with people who are knowledgeable about this space. As an avid student of economics, I also view a lot of content published by researchers and especially enjoy video content that they release. The 2027 bet by Morgan Stanley, is one such video that managed to leave an indelible mark on me. The MS experts predict that the BSE Sensex will cross 1,00,000 by 2027 piggybacking off a $6 trillion Indian economy. 66% of this new India in 2027 will be made up of the consumer & finance sectors. The implications of that bet are explained in greater detail in their report India’s Digital Leap: The Multi-Trillion-Dollar Opportunity. It also talks about the impact that a rise in per capita income to $4100 will have.  

Morgan Stanley’s Managing Director, Ridham Desai prepared a short video on this report and did an interview with Bloomberg Quint to explain his predictions further. If there is one video that you should watch today to prepare yourself for the massive bull run that we are already witnessing and will continue to come our way with greater force, this is the one.  

 

 5/2018