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“In the capital goods space, Cummins, Thermax, Bharat Forge and L&T are four of the choicest names. You can add an ABB. Three insurance names – SBI Life, ICICI Pru, and HDFC Life – in tandem could be very good wealth creators over a period of time and this distribution channel, particularly brokers, exchanges, insurance and the AMCs are a very good long-term bet.”

“In India the largecaps – Nifty, Sensex can compound 12% longer term. I do not see a challenge in that. Markets are now close to historic multiples, slightly higher but I think there are three reasons why Indian multiples may settle higher than the past – faster growth, lower cost of capital and lower volatility.”

“As the wedding season sets in, the hotel industry is going through the roof. As an ancillary to that, car sales will pick up. Maruti becomes a very good play. Ashok Leyland is the third largest bus maker in the world and is only gaining traction. So, autos and entertainment is something which you can easily play. One can add some of the other consumer discretionaries.”

“Excesses will not sustain in a market because markets may be imperfect over short to medium periods and medium period can be even three-four years, but in the long term, market irons out any imperfections. So, we are in that phase and today, sectors are coming closer and closer to their real valuations in largecaps.”

“I am looking for a sparkling Diwali, and I would say build up your portfolio. Do not look at the next three weeks, look at the next three years. There can be a little uncertainty when the elections come, but we still think that we will go to new highs by the end of the year.”