Rupee Is Going To Strengthen Dramatically, Says Manish Chokhani

Investments in India will lead to the rupee strengthening dramatically, according to Manish Chokhani, director of Enam Holdings Pvt. The asset management company is positioning itself for inflow of foreign investments. While bond index money has begun to come in, equity flows remain somewhat muted, with hopes for a market correction, he said.

"We all witnessed the rapid response from local investors who bought shares following the poll results, not really giving a break to foreign investors to buy cheap stocks," he told NDTV Profit.

At some point, this economic miracle of India will reverse the trajectory of the rupee, according to Chokhani. "When that happens, foreigners will realise that it's a game where the country will have falling rates alongside a stronger currency, while maintaining its high rate of return on equity."

"The investment community has quickly adjusted to the coalition government. Investors are relieved that Chandrababu Naidu, known for his pro-development stance, is one of the allies in the NDA government," Chokhani said. The next 100 days are going to be very exciting, according to him.

"People I have met in Europe are very enthused with what is happening in India... Investors in Europe are just waiting to participate in the India story," he said.

No sector is "cheap" and this is a rotational bull market, according to Chokhani.

The old paradigm that PSU banks can only trade at 1-1.2 times price-to-book will change very soon, he said.

Mid-cap and small-cap stocks look expensive currently, but can make for a good investment, according to him. "(I) Remain hopeful that the farm laws will be pushed through."

The next five years is an exciting time for infrastructure development in India, he said.