The correction in Indian equities witnessed in the month of October does not worry veteran fund manager Anand Rathi as he believes the Indian economy's strength augurs well for long-term growth.
The Indian market benchmarks, the Nifty and the Sensex, are both down over 5% in the past month.
"The market reflects the economy, which is doing very well, with 7% growth, declining inflation and interest rates. I am not skeptical about the market as volatility is part of it," the founder and chairman of Anand Rathi Wealth Ltd told NDTV Profit.
He said India is an "island of growth" amid global economic uncertainty and the recent pullout of foreign institutional capital is temporary. "FIIs come in and go out, but long term they will stay (in India)," he said.
Rathi also highlighted the growth in retail investors and said people are getting more educated about investment and asset classes.
"In the long term, equity as an asset class will do well. The cake size of wealth is increasing. People used to go to real estate and gold, now people have realised that besides them, equity gives good returns," Anand Rathi said.
He maintained his bullish view on banking, NBFCs, FMCG, pharma and infrastructure.
The NSE Nifty 50 and BSE Sensex rebounded from two–day decline in an annual special trading session for the occasion of Samvat 2081. On NSE, in the special Diwali muhurat trading session, 11 sectors ended higher, and one ended lower out of 12.
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