Demonetisation was an “uncalled for disaster“, GST caused problems
Global fund managers are normally highly diplomatic in their approach.
They steer clear of political issues and avoid saying anything which can create a controversy.
However, Krishna Memani, the CIO of OFI Global Asset Management, preferred to be candid and speak his mind.
“As a fellow Indian and part of the global Indian community, I am hoping that the Modi government has at least learnt some lessons out of the policies that it implemented,” he pleaded.
He opined that Demonetisation “clearly was an uncalled for disaster”.
“It did not accomplish anything and caused a great deal of commotion,” he said.
He also slammed GST for causing near-term problems due to shoddy implementation though he conceded that from a longer term perspective, it is the most important piece of legislation.
He pointed out that while some of the policies implemented by NAMO are “really good”, some are not as good.
He advised NAMO to “learn some lessons” and “focus on economic growth”.
Don't think elections are going to be market 'unfriendly'. He further says that the growth story of India is intact even if the election turns up being hostile for the market. Watch @KrishnaMemani's views on markets and elections. #Battle2019 @AyeshaFaridi1 @nikunjdalmia pic.twitter.com/l6KmR0Z8lf
— ET NOW (@ETNOWlive) April 5, 2019
Raamdeo Agrawal also cautioned NAMO not to dislocate the system further
It is worth recalling that Raamdeo Agrawal also gave NAMO a piece of his mind with regard to the reckless pace and manner at which reforms are being implemented.
“My sense is the government should not further dislocate the system. The system has limited shock-taking capability as an economy. It is a very complex system. The economy takes time to come to terms with the new changes. You have changes in RERA, GST, IBC process, demonetisation. You want everything to be formal, compliant and all the bad guys to be out of the system. Now, the government should give a pause to further reforms,” he implored.
NAMO will storm back into power in 2019
Krishna Memani echoed the consensus view in Dalal Street that NAMO will romp back into power in 2019.
“I do not think the elections are going to be market unfriendly. Modi may not get the majority that he is looking for but the chance of him not getting elected is relatively modest,” he said.
It is worth recalling that Rakesh Jhunjhunwala, the Badshah of Dalal Street, and other eminent personalities like Billionaires Narayana Murthy, Prem Watsa etc have already predicted that NAMO will be victorious in the elections.
— EconomicTimes (@EconomicTimes) February 6, 2019
#EXCLUSIVE | Here's why Narayana Murthy believes continuity of the Modi Govt will be good for India@Infosys @chandrarsrikant #MurthyToETNOW @PMOIndia @narendramodi @Infosys_nmurthy #Elections2019 #Elections pic.twitter.com/9HD8BB1pqk
— ET NOW (@ETNOWlive) November 14, 2018
— Porinju Veliyath (@porinju) March 12, 2019
— Rajdeep Sardesai (@sardesairajdeep) March 11, 2019
*FII's Buying is indicating that present govt is coming back to power.*
FII's identified it in 2014 as well that Modi is coming to power and rally started 5 months ahead of Elections.
Let's see if FII's are right in predicting Elections Result this time as well.
— Ravindra Naveen FnO (@FraiseFnO) March 9, 2019
Even if RaGa comes to power … India will remain the fastest growing long-term economy in the world
Krishna Memani made it clear that he is not much bothered about whether NAMO or RAGA come into power in 2019.
“Even if this election ends up being not too market friendly, irrespective of who gets elected economic policies would have to be good that support long-term growth,” he said.
He also confidently stated that the long-term growth story in India is very much intact.
“India is likely to remain the fastest growing long-term economy in the world and therefore if there are market opportunities like that we would certainly take advantage of that,” implying that he will rush in to grab stocks if there is a sell-off after the elections.
HDFC is a great company
Krishna Memani couldn’t resist the urge to offer us a stock tip.
He cherry-picked HDFC, the blue-chip behemoth, and lavished it with praise.
“There are lots of really good promoters in India,” he said.
“One example is HDFC. This is a company that we have been with for a very long period of time. They have delivered. They have been fair to their shareholders. It is a great company and we believe there are plenty of opportunities like that in India”.
No doubt, the choice of HDFC as an investment candidate is impeccable. One cannot go wrong with such Blue-chip powerhouse stocks.