Indian Market In A Sweet Spot Among Global Peers, Says Helios Capital's Dinshaw Irani

India has entered into a new league and is standing out globally, according to Dinshaw Irani of Helios Capital Management.

"We are the fifth largest economy in the world in the way we are moving, and hoping to be the third largest by calendar year 2027-28," Irani, chief executive officer at Helios Capital Management (India) Pvt. said, in an interview with BQ Prime's Niraj Shah.

Indian stock markets rose to record levels on June 28, with key benchmark indices scaling new highs. The Sensex crossed the 64,000 mark, rising to 64,050.44 and Nifty 50 breached the 19,000-level to 19,011.25—both new records and about 1% higher than Tuesday's close.

In terms of valuations, Irani said things have changed after demonetisation. A lot of demat accounts were opened and flows came into, he said. "We are in a very sweet spot today and comfortable in the market."

The economy witnessed a huge flow of foreign institutional investment as well over the past few months, Irani said.

Overseas investors net bought stocks worth Rs 43,838 crore in May, the highest since August 2022, according to the National Securities Depository Ltd. Foreign portfolio investors turned net buyers of Indian equities in March, buying Rs 7,936 crore worth of stocks.

The price-to-earnings growth is clearly in favour of financials, according to Irani.

"History teaches us a lot of lessons, and if we go back and see the economies which grow, it is mainly the financials and consumptions that play a big part," he said.

Financials play a double role as they not only fund the consumption stocks, but also fund the capex needed to take care of the consumption stocks, he said.

"Financial is a big area of comfort for us right now," Irani said. He expects financials to drive the market rally.

Irani remains cautious on real estate and is looking at selective places, that are metro city-driven. "Our focus is more into luxury housing space," he said.