Akash Prakash, ace stock picker and founder of Amansa Capital (AUM of Rs. 4500+ cr), was a disillusioned man. In an article in the BS, he sent NAMO a clear warning that investors are “deeply disappointed” over the lack of reforms. He warned NAMO that if he did not get his act together soon, there would be a mass exodus of foreign investors from India (to China).
Akash Prakash’s stand was in sharp contrast to the views expressed by some other foreign investors. The wizards at Morgan Stanley, for instance, adopted a bullish stance and advised investors to take advantage of the correction in the market to buy stocks “lock, stock and barrel”.
Fortunately, even Akash Prakash has now softened his stand and veered around to the view that NAMO is doing his best in the circumstances.
In his latest piece “A week in India”, Akash Prakash talks of the time that he spent at the Morgan Stanley investment conference. The bullishness of the Morgan Stanley wizards has clearly rubbed off on Akash Prakash and he has struck a conciliatory note. He points out that he went back from the trip “more positive”. He states that there is “a clear sense of direction and purpose to what the government wanted to achieve” and that though things were taking longer than one wished, “there was a plan to turn around the economy and it was in the midst of execution”. He has cited eleven circumstances which suggest that NAMO is getting his act in order.
At the end, Akash Prakash has advised investors to buy stocks on dips. He says:
“We seem to be stuck in a trading range, breaking out of which will be difficult. There is no need to chase markets…. However, whenever markets correct, it is, to my mind, a buying opportunity. The long-term direction is clear – economic growth will continue to accelerate, earnings improve, and inflation and rates remain subdued …. Keep an eye on the long term; markets will keep correcting and throwing up opportunities”.
So, the risk of a mass exodus of foreign investors appears to be staved off for now.