Latest news with #VikasKhemani
Time of India
09-08-2025
- Business
- Time of India
Wealth creation boom ahead as India's growth cycle picks up pace, says Vikas Khemani
India's investment industry is entering an exciting phase of diversification, with a broader range of products and strategies catering to investors' evolving needs. According to Vikas Khemani , Founder & CIO of Carnelian Asset Advisors, the market 's rapid growth, rising financialization, and expanding investor base will pave the way for multiple investment styles — from quant-driven models to value and fundamental approaches — to coexist and thrive. Speaking on the sidelines of the APMI conference in Mumbai, Khemani noted that this is a natural progression seen in mature markets like the US, and India is now poised to follow a similar trajectory. Edited Excerpts - Kshitij Anand: Well, just to start off from the APMI perspective, why do you think this is a necessary step towards creating a more holistic environment for portfolio managers? Vikas Khemani: I think it is an evolving industry. It is a fast-growing industry, and a lot of new players are coming in, providing very customised, bespoke solutions for clients. As any economy evolves and grows, and wealth creation happens, you need alternative products suited to the needs of each customer. So, this is a very good association of such people who are providing these services to clients. This association addresses many issues — from a regulatory framework perspective, a client interest perspective, and a manager's perspective — and creates an environment to provide solutions to a lot of challenges and opportunities for growth. Kshitij Anand: I remember that Carnelian as a group is more structured towards the Bharat mantra, or you could say the Bharat philosophy. How positive, how gung-ho are you right now on that? Vikas Khemani: I am very, very positive. India is in one of the best wealth creation cycles we have ever seen. I feel that over the next 10 to 15 years, we will create a very sizable amount of wealth as a country. I consider myself lucky to be part of this cycle — all of us are. There is a multi-dimensional opportunity here. Huge wealth will be created, and the equity journey has just started. But not only in equity and debt — in multiple asset classes you will see the financialization of assets . So, I am very excited. We have a fund called the Bharat Amritkaal Fund, which primarily captures high-growth opportunities during this period as India grows from a $4 trillion GDP to a $10 trillion GDP. That is a very, very big opportunity for us. Kshitij Anand: I know it is a very basic question, but whenever we are with you, we definitely want to ask — market ka kya lagta hai? Because A) there are a lot of things happening on the tariff front. Obviously, we are seeing massive selling from FIIs at this point of time, but they are actually buyers in the IPO segment of the primary market. So yes, two love points coming in there — one is a hate and one is a love. What is your thought? Vikas Khemani: FIIs have been selling for three to four years now, so it is not something new. Fortunately, domestics are buying, which is a great thing. Historically, domestics sold, FIIs bought, and they created the wealth. Now, this is a situation where… it is a good situation. As the equity exposure of Indian households goes up — today it is about 5-6%, whereas 10 years ago it was 1% — I think in the next 10-15 years it will go to 20-25%. So, it is a long journey, and domestics are getting to buy stocks. Foreigners will also come, no doubt in my mind. Especially when the Fed rate starts coming down, you will see a lot of money flowing towards emerging markets, and that is a journey we will see in times to come. I am not very worried about that. Regarding tariffs, these are short-term issues. Indian exposure to US exports is very limited — $80 billion, which is very small. Of course, you want to get it sorted out, and it will get sorted out. Apart from the political theatrics, I guess it will settle down soon, because the fact of the matter is both India and the US need each other. Both are democracies, both are very open economies, and both are innovation-driven economies. So, it will get sorted out — it is just a matter of time, whether three months or six months. Meanwhile, I do not think it is going to be destabilising for Indian markets or the economy. Kshitij Anand: Looking at the broader perspective, how do you see the industry evolving now? Because, as Mr. Tuhin Kanta and Ashishkumar Chauhan also highlighted, the industry has grown by leaps and bounds in the past four to five years. New products are coming in, a lot of quant-based methodologies are also pouring in, and every day we are seeing some new thematic fund getting launched. How do you see the industry evolving in the next few years? Vikas Khemani: Absolutely. Like the evolution of every economy, as the economy evolves, markets get bigger and bigger, the heterogeneity of investors goes up, and so do the products, because needs change. Somebody is happy to even make a 10% return, somebody is happy to make a 15% return, and somebody is looking for a 30% return. So, across all assets… And there are different styles — fundamental style, value style, quant style — each can create its own product and journey. That will happen. It is a very natural progression. It is also happening because of high financialization and the changing needs of investors, and you will see it only getting bigger and better. In many markets like the US, you have big $20, $30, $40 billion funds doing this kind of work. You will see the same thing happening in India. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
01-08-2025
- Business
- Economic Times
‘Stay invested, don't panic': Vikas Khemani on market volatility
Agencies It's still intact. Just don't panic during such times—that's the best advice I can give. "Technically, there could be a quarter or two of adjustment, but structurally, I don't think it's a problem. Most Indian pharma companies supply generic drugs to the US, which accounts for over 45% of the US generic medicine market," says Vikas Khemani, Carnelian Asset Management. The only question now is where FII flows will move. While domestic institutions have been providing a cushion to the equity markets for years, liquidity isn't really a concern. But I was just looking at the July data—out of the 22 sessions, FIIs have been net sellers in 17, and on some days, quite significantly. Do you think this flight of FIIs could pose a risk for us? Vikas Khemani: I don't think it's something that's happening in a hurry. I mean, I don't think this particular event will lead to FIIs pulling out. As the Fed rate starts coming down, I believe you'll see FIIs returning. If you look at global equity portfolios, India is still underweight. I'm sure that with a structural view, this will change eventually. Technically, there might be some ups and downs, but this event alone won't alter India's long-term attractiveness. India is primarily a domestic growth story, not an export-led one. No FII comes to India because of exports, so I don't think this changes anything fundamentally. Let's also get your take on the pharma sector. You've been bullish on this space, and recently, earnings have been quite strong. But now with the blanket 25% tariff announcement—although Donald Trump has stated that pharma tariffs will be dealt with separately and mentioned a 200% number—do you think the current stance towards India could bring challenges for Indian pharma companies, especially given their large exposure to the US? Vikas Khemani: Technically, there could be a quarter or two of adjustment, but structurally, I don't think it's a problem. Most Indian pharma companies supply generic drugs to the US, which accounts for over 45% of the US generic medicine market. Even if tariffs are imposed, Indian companies can pass on the impact after a brief adjustment period. These companies don't have high margins or ROCEs to absorb such costs. The 200% tariff that Trump is talking about applies mainly to innovator drugs, where prices in the US are significantly higher than in other developed markets. That's not where Indian companies operate. Also, the US can't easily replace its 45% market share sourced from Indian suppliers. The supply chain and capabilities are already established. So, after a couple of quarters, the cost will likely be passed on to the end consumers in the US. So what's your message for investors? It seems the consensus now is to stick with domestically linked sectors. Do you agree? Vikas Khemani: Stay put. Invest. Continue believing in India. Nothing in the Indian growth story is changing because of this. Technical risks like these will come and go. Also, let's not forget—this is just one event. We've seen rollbacks and negotiations before. This isn't a final verdict. I'm sure there will be a treaty eventually—both the US and India need each other. These negotiation tactics are common, like we've seen with other countries. Yes, the complexity is greater here due to the size and nature of the two economies, but it will be worked out. Even if this tariff becomes permanent, its impact is not very large. The India story is far more robust than this one factor. That said, I believe this issue will also be resolved. So continue to stay invested. I'm not saying the export-oriented story is over either. It's still intact. Just don't panic during such times—that's the best advice I can give.
Time of India
01-08-2025
- Business
- Time of India
‘Stay invested, don't panic': Vikas Khemani on market volatility
"Technically, there could be a quarter or two of adjustment, but structurally, I don't think it's a problem. Most Indian pharma companies supply generic drugs to the US, which accounts for over 45% of the US generic medicine market ," says Vikas Khemani , Carnelian Asset Management. The only question now is where FII flows will move. While domestic institutions have been providing a cushion to the equity markets for years, liquidity isn't really a concern. But I was just looking at the July data—out of the 22 sessions, FIIs have been net sellers in 17, and on some days, quite significantly. Do you think this flight of FIIs could pose a risk for us? Vikas Khemani: I don't think it's something that's happening in a hurry. I mean, I don't think this particular event will lead to FIIs pulling out. As the Fed rate starts coming down, I believe you'll see FIIs returning. If you look at global equity portfolios, India is still underweight. I'm sure that with a structural view, this will change eventually. Technically, there might be some ups and downs, but this event alone won't alter India's long-term attractiveness. India is primarily a domestic growth story, not an export-led one. No FII comes to India because of exports, so I don't think this changes anything fundamentally. Explore courses from Top Institutes in Please select course: Select a Course Category MCA Data Science Finance Leadership Healthcare CXO MBA Degree Artificial Intelligence Technology others Public Policy PGDM Operations Management Cybersecurity Product Management Design Thinking Project Management Digital Marketing Data Science Others healthcare Management Data Analytics Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Let's also get your take on the pharma sector. You've been bullish on this space, and recently, earnings have been quite strong. But now with the blanket 25% tariff announcement—although Donald Trump has stated that pharma tariffs will be dealt with separately and mentioned a 200% number—do you think the current stance towards India could bring challenges for Indian pharma companies, especially given their large exposure to the US? Vikas Khemani: Technically, there could be a quarter or two of adjustment, but structurally, I don't think it's a problem. Most Indian pharma companies supply generic drugs to the US, which accounts for over 45% of the US generic medicine market. Even if tariffs are imposed, Indian companies can pass on the impact after a brief adjustment period. These companies don't have high margins or ROCEs to absorb such costs. The 200% tariff that Trump is talking about applies mainly to innovator drugs, where prices in the US are significantly higher than in other developed markets. That's not where Indian companies operate. Also, the US can't easily replace its 45% market share sourced from Indian suppliers. The supply chain and capabilities are already established. So, after a couple of quarters, the cost will likely be passed on to the end consumers in the US. So what's your message for investors? It seems the consensus now is to stick with domestically linked sectors. Do you agree? Vikas Khemani: Stay put. Invest. Continue believing in India. Nothing in the Indian growth story is changing because of this. Technical risks like these will come and go. Also, let's not forget—this is just one event. We've seen rollbacks and negotiations before. This isn't a final verdict. I'm sure there will be a treaty eventually—both the US and India need each other. These negotiation tactics are common, like we've seen with other countries. Yes, the complexity is greater here due to the size and nature of the two economies, but it will be worked out. Even if this tariff becomes permanent, its impact is not very large. The India story is far more robust than this one factor. That said, I believe this issue will also be resolved. So continue to stay invested. I'm not saying the export-oriented story is over either. It's still intact. Just don't panic during such times—that's the best advice I can give. Live Events
Economic Times
31-07-2025
- Business
- Economic Times
25% US tariff not a structural threat to Indian market: Vikas Khemani
Two things to consider: First, the entire tariff burden doesn't necessarily fall on companies. Some portion might be absorbed in the short term, but eventually, it will be passed on to U.S. consumers. Vikas Khemani of Carnelian Asset Management suggests that while U.S. tariffs may cause short-term earnings uncertainty for Indian exporters, a major structural risk to the overall market is unlikely. The markets have largely priced in the potential impact of a 25% tariff, and India's strong domestic consumption and infrastructure development provide a buffer. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "I'm not saying U.S. exports will collapse, but this uncertainty can impact earnings for a quarter or two for companies exporting to the U.S. The final impact will depend on how the negotiations evolve. That said, given the current context where many countries are being levied around 25%, it's not drastically negative — everyone is being treated similarly," says Vikas Khemani Keep in mind, these are not the final tariff numbers. The negotiations around tariffs can go on for a long time. Even in the last quarter, we saw uncertainty, and there was a drop in volumes for companies focused on exports to the U.S. This is expected whenever there's policy uncertainty, and I believe we'll likely face at least another quarter of such ambiguity.I'm not saying U.S. exports will collapse, but this uncertainty can impact earnings for a quarter or two for companies exporting to the U.S. The final impact will depend on how the negotiations evolve. That said, given the current context where many countries are being levied around 25%, it's not drastically negative — everyone is being treated course, we would prefer more favorable terms, but these are complex, long-term negotiations. I'm sure the government is actively and thoughtfully working on it, keeping all interests in mind. So, yes, there may be some temporary pain — a quarter or two of uncertainty for sectors exposed to the U.S. — but beyond that, I don't see a structural to the U.S. account for about $80–90 billion, which contributes relatively little to overall corporate earnings. So, at a market-structure level, I don't see a major risk. Specific companies or segments might feel the impact, but even that could be temporary, depending on the final That's a fair point. In my view, the markets weren't expecting anything worse than this. So now we know the worst-case scenario and its likely impact — and we can assess it and move I said earlier, at a structural level — at the Nifty or overall market level — the impact on earnings due to this may not be significant. Of course, some companies that were counting on strong growth from that market could be affected in the short term. But even that, I believe, won't be "China Plus One" diversification strategy is here to stay for the long term. More importantly, India remains a strong domestic consumption story — far bigger and better than the export story — and that continues to be solid. Our infrastructure build-out is also progressing well, and import substitution remains a strong theme.I'm not saying we shouldn't pursue a favorable trade deal, but I'm confident the government is acutely aware of what to negotiate and what to protect — just like they handled the UK FTA. I expect this too will be resolved in a few months or quarters, depending on progress. Most countries are in the same boat. So, I wouldn't view this as a structural negative at my opinion, these two issues are entirely unlinked. The RBI has done a great job by frontloading a 100-basis-point rate cut, and I don't think more is required at this things to consider: First, the entire tariff burden doesn't necessarily fall on companies. Some portion might be absorbed in the short term, but eventually, it will be passed on to U.S. exporters do get a bit of relief from a depreciating rupee. We saw the rupee weaken a bit yesterday, which helps offset some of the impact. So, assuming this is a massive, widespread negative would be incorrect. There may be marginal pressure on companies exposed to the U.S., but I'm confident the government will roll out a measured tariff response and provide targeted incentives for affected sectors. That said, it won't happen overnight — it'll take time, as it should.
Time of India
17-07-2025
- Business
- Time of India
₹1,700 Cr Sell-Off: Is India's Defence Boom Overheating?
India's defence stocks are flashing red. Mutual funds have offloaded a massive ₹1,700 crore across top names like Solar Industries, Bharat Forge, Zen Technologies, and more, signaling deep concerns over valuation and execution a 3-month rally of up to 84% post-Operation Sindoor, the sector is now facing a reality check. Even institutional bulls like Kotak AMC and Motilal Oswal are tapping the brakes. So, is the defence dream fading — or just recalibrating?In this video, we break down:Why mutual funds are exitingWhich stocks are under pressureWhat experts like Vikas Khemani and Ambareesh Baliga are warningThe long-term opportunity still intactShould you sell, hold, or SIP into defence now? Let's decode. Show more Show less
