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Okay, congratulations again. I think the market is behaving quite, very, very quietly actually. 32 points up, 25,268. That's the kind of day. The broader markets are also, you know, not growing much. They behave calmly, falling rather than growing. So I think this is the perfect time to talk about a little bit of the bigger picture.
Markets, of course, and with us in the studio, as promised, is Vijay Kedia, who needs no introduction. Of course, a private investor. Vijay ji, as always, it is a great pleasure to have you here. I want to tell our viewers that on Friday you must have seen the Hurun India list of India's richest people.
You know, there are promoters, industrialists and all sorts of people there, but Kedia-ji was also on the list. So I can say: I congratulate you. And the good thing is that you are not a speculator. You are not using leverage. You are not constantly trading back and forth. I looked at your stock package for June, it's pretty much the same as it was two, three, four quarters ago.
Only minor changes. So you're a long-term investor and you're on the rich list. I just wanted to start with that and then we'll move on to markets and so on. No, everything is fine. If you're talking about this list, it's number 1276. If you count backwards, it's 15%. The market is 15% out of 100 . Well, okay.
This tells me there is still a lot to come. So that's okay. But this proves that you can make money in the market. This means that long-term investing is the only way to grow in this market. That's exactly what it proves. Yes. But you started with the fact that there is still a long way to go . Still a long way to go, isn't it ?
Since the rating is 1276. We don't know. It depends on market wealth. And I know you don't know that either. We always say that your deposit account belongs to the market. Your bank account belongs to you, you know. So we never know what will happen tomorrow or next year. We do n't know that. But you were also a little bit cautious about the market, right?
I talked about this last time, I remember you said there was panic in the market. Yes. So is it still a panic or is it still present in the market because some sectors have definitely cooled down, as we said last time. After that, the defense sector and all these state-owned enterprises sagged a bit, but the money, you know, didn't leave the market.
This is also good because it will support the market, and people are still , you know, adventurous. Look at what IPOs and other things are happening in this market. So people are still, you know, risk-averse, that mentality is still there. Where are the opportunities now , because money continues to flow in, people want to invest.
We believe in the long-term growth story of Indian equities, but valuations are prohibitive. So where exactly do you find opportunities? Yes, again, it depends on the circumstances. I wouldn't say this whole market is expensive, but I would n't say the whole market is cheap either. You know , I think you'll find fraud 90% of the time, nine out of 10 places in this market.
So what I do for myself is this: I just stay away. Whatever my investments are, I just hold them, maybe I'll swap one stock for another somewhere, or do something like that. Otherwise, the main thing is not to be adventurous in this market and just observe. Hi Vijayji, good afternoon Nigel, it's nice to see you on that list at number 1276.
You know, from the way you said it , I understand that you're like that batsman who's batting somewhere at the bottom of the list right now, but you're aiming to come out and play a longer innings at the top of the list. So I wish you success in this. You know, since you're talking about market fraud, Vijayji, I wanted to ask you about the SME sector in particular.
You've made big bets on some of these names. And it seems like the street is just lumping everything together now , you know, saying that a lot of them are scams, they're being hyped up, etc. But some of them also have their own themes. Just to highlight, you know, there's this affordable robotics company that was an SME and now it's going to be listed on the main board.
So management also did some work, in addition to having its own theme. What is your opinion on the SME sector and some small-cap companies ? No, I believe that fraud certainly exists in the small and medium-sized business sector. You see, the thing is that it will be very difficult for a new investor to distinguish where there is fraud and where there is not.
Therefore, this becomes a somewhat difficult task. Now, regarding the stocks you just mentioned, in particular Affordable. I have been an investor in this company for many years. So this is, so to speak, a disclosure of information. But let me tell you one thing, Nigel: it's like going from the SME level to, say, a mainstream platform.
It's like flying from economy class to business class. But in the end it doesn't change anything, you know, the travel time remains the same . You might get a little more comfort if you want to raise funds, etc. This will give your investors a little confidence . But in general, fundamentally, it doesn't matter.
You will feel that the steward or flight attendant offers you juice more often because you are in business class on the main concourse . From the point of view of attracting additional funding. A fair, valid remark. But, you know, if we develop this idea, there is a buzz around IPOs of small and medium-sized businesses, and we see that the regulator has also paid attention to this.
There is also some fear of lost profits regarding non-public companies in general. Be it private companies like Swiggy or the need to be at the pre-IPO stage of the next big offering. Whether it was Ola or the next Swiggy. What do you say about this? And regarding the IPO queue, I'm not talking about small and medium-sized businesses now, but about the mainstream market, interesting large companies preparing for an exit.
What concepts or types of companies do you find fascinating? No, nothing. I don't invest in IPOs. I also don't invest in pre-IPO companies. And, of course, in such a market, as I speak to you, I will not invest. So I just stick with my old investments and I'm comfortable. So, I wouldn't want to experiment.
When a typhoon is raging, you know, the best thing to do is to stay calm. And your briefcase has... We have a briefcase, show it. We think we've shown the portfolio, and it's largely stable. This is as of the end of June, June 30th. Shares of companies where Mr. Kedia has more than 1% ownership. Uh, there will also be others, less than 1%.
This, of course, is not public information. Mr. Kediya, regarding Surabhi's comment, pre-IPO, I guess it's also a bit like supply chain management, right? That is, you go back and forth because by the time you get to market, it's expensive. So you're trying...Isn't that what's happening? I mean, the people who do this are trying to buy it, you know, first as a private company and then, you know, the anchor method, well, as a small investor, you don't have a chance.
So there's a lot of interest in pre-IPO in the early stages because at every round, at every stage, by the time it hits the market, uh , and that's true for big investors as well , that you go straight to the source to try to get it as cheap as possible because, as you said, by the time it hits the market, it's not cheap anymore.
It becomes quite appreciated or expensive. Prashant, for some reason I feel that nine out of 10 stocks are manipulated. Let me say, if I may use that word, either manipulated by merchant bankers, or manipulated by owners, promoters or investors, or even the person who applies to all these companies, I believe there is manipulation going on there.
There is a scam going on in this sector . I'm not saying In which, in which sector? IPO of small and medium-sized enterprises. IPO of small and medium-sized enterprises. IPOs of small and medium-sized enterprises and so on . Yes. But only, only the SME board, do you think that even in the main board in the pre-IPO segment there is some undesirable element of trading?
Look at Ola, what happened to Ola? I think it went public at Rs 76. I think at the time it went public, I...it was out of cycle, I think. It was in two days. And then what happened a few days later or maybe a few hours later, it started and the stock went up to 155. And some big foreign institutional investors or one big investor, I do n't know, they dumped the stock, they sold the stock.
And the stock fell 30%, to 114. What is this? Mm. Maybe it's not manipulation, but it's euphoria, and it's pure euphoria, yes. So, I would like to stay away from all these market events. But you said specifically on SMEs, do you think things have calmed down a bit in the last few weeks after SEBI issued the advisory, and at least I've heard it's because they're not approved by the regulator?
These SME IPOs are approved by the stock exchanges, BSE and NSE. It doesn't matter. But the pace of approval has slowed. It used to be three, four, five IPOs every week. But I mean, they slow down the process a little bit. That's why this Yamaha dealer got the listing. Oh, the father didn't do it, so the son stole it.
The son didn't do it , so the grandson did. What's the difference, right? You know, the news right now is that there are two dealers. Two dealerships. Eighteen employees and all that. So I don't know. They're probably using artificial intelligence, and every dealership will create, produce some kind of creator.
When we spoke to Deepak Shenoy also regarding this particular issue. Now they did not ask for 2700, 2800 crores. They asked for how much, 12 crores, right? Er, 12 crores. 12 crores. They got subscriptions from people. What is the promoter going to do? You're right, it's euphoria, and people really are chasing everything .
But, what would you call it, you know, how would you characterize it? Bull market. These things are structured, Prashant. It didn't just happen by itself . This is predetermined . I think all these, I don't know who is the merchant banker of this company. I'm not talking about this specific company.
But I feel that is exactly what I said and SEBI in one of the committees where they invited me, I said the same thing there too. That's all, all these things look like, you know , they're sitting at a table. Okay, he'll apply for that much. They have a pool of investors who have made money in the past on their IPOs and offerings.
So, it's a kind of structured problem, a structured game. Money, I'm not talking about this particular company. But I usually find these to be structured releases. So, is subscribing 100 times, 200 times, to some extent, in your opinion, a bit over-engineered? Designed, yes, yes, 100%. It just doesn't happen.
Yes. Now, of course, SEBI says there are restrictions on the first day , right? 90% for SMEs . They said it was 90. So you're comparing the current market situation to a typhoon. Yes. You know, it causes a lot of damage and destruction, but on a broad index level, we haven't been affected yet. So are you expecting a major market correction?
There will be a correction in this market. I used to expect that maybe this whole market would collapse. But it seems that this liquidity will not allow the market to collapse as a whole. So maybe this will continue. The market will continue to grow due to rotation. Perhaps some sectors will respond, and then the money will go to other sectors.
So, this market rotation will continue as long as the US market holds its ground. But the global market is still important. Is the global market still important? Of course, it is important. From a sentiment perspective, I think it's important. Yes , I think so. Because in August we got a little push, but we fixed it quickly, right ?
In early August. This is because, after all, the Dow Jones market is also at an all-time high. The Nasdaq is also approaching an all-time high. So, from a sentiment perspective, from a sentiment perspective, it matters, I think. You know, we're trying to figure out the new norm of getting huge amounts of internal liquidity month after month.
Thanks to the money coming in from mutual funds. This is one trend that has no way back , right? So the question arises, and perhaps that's why everything is being bought up: the capital gains tax—it's been bought up. Electoral volatility—it was bought. You have a hard landing in the US , a soft landing, Goldilocks is here or not.
It's all redeeming. Does this worry you? Are we in an irreversible situation where the money just keeps coming in every month? No, it won't last forever. Of course, of course, it worries me because I think it won't last forever. Now, regarding your question about long-term capital gains tax and STT STCG, since there are such large volumes in this market.
There is so much speculation going on in this market. There is so much gambling going on in this market. So, they don't worry when they go to the casino, and if they charge you 25 or 50 rupees for something that costs 5, you don't mind. Yes. And as I think I've said on this channel , how many people pay capital gains tax on long-term investments.
The day the LTCG tax was increased, I said it wouldn't affect the market because not many people pay it. You just compared the market to a casino. Do you think we are really acting on this? Yes, what happens in this market is very similar to what happens in a casino. Of course. This is a modern casino.
Nigel? Okay, Vijay Ji, last question: since you talked about the topic of electric vehicles, Ola, and expressed your opinion on it. I wanted to ask about other ways to play on this theme. You have companies like Precision Camshaft. Many promises , but no results yet. Can you tell us about your thesis on this?
Yes, Nigel, I am an investor in this company. So this is my disclosure . I have a personal interest. And I think what they've been doing for the last 3 years, this retrofit, people are well aware of. They, of course, collaborate with some of the major manufacturers of light commercial vehicles. So, if we believe in this topic of electric cars, then of course, the retrofit will work sooner or later too.
Maybe they should benefit from this. So, Vijay Ji, let's now talk about an investor who wants to go beyond, you know, the casino or what's happening in the market. We are talking about people who want to create long-term capital. The problem they face is that in most cases, the prices of the stocks that people want to buy don't fall.
And those where there is some comfort in terms of valuation, for example, large "blue chip" banks or FMCG companies, where there is quality and, perhaps, a good price. These stocks have n't really risen significantly yet. So investors are confused about what to buy. What would be your advice ? No, I will say that I cannot give advice because I am not an advisor.
I will only say what I do myself if I like the stock just today. And maybe there's some "foam" in this particular stock because of what's happening in the market right now. So, there are two ways, Surabhi. The first option: I buy now, the stock price drops by 10-15%, and I regret it. The second option: let's say I don't buy today, and the stock goes up by 15-20% or even 20-30%, and I regret it again.
So you will have to choose one of the two disappointments, which is closer to you. Personally, I prefer disappointment when I buy and the share price falls. It's easier for me to accept this than to miss my chance. It all depends on your personal choice and where you feel comfortable. OK. I know you can't name specific stocks, but maybe there are themes or ideas that are really inspiring you right now ?
I mean, people talk about fast commerce, electric transportation, data centers. There are many new topics that people are discussing and companies entering the market. Where do you think you can make money in the long term? Maybe money can be made in all these sectors you mentioned, but they have become very trendy.
Therefore, I usually do not invest in sectors that have become too trendy or fashionable. I like to invest in sectors that are unheard of or that people are skeptical about. That's where I usually invest. But that stage is long gone, right? We are now at a stage where almost everything looks attractive.
Fashionable and glamorous, yes. So, such opportunities have decreased. Vijay, it's very nice to have you with us today. Thank you very much. Thank you for coming. Thank you. We, as always, really appreciate it here at CNBC. Well, I guess we... Thanks for watching CNBC TV18, follow our social media pages to stay up to date with news, updates and more.
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