Porinju Veliyath says Sensex and Nifty returns will disappoint in New Year 2018

Even as the markets enter into new year 2018, ace investor Porinju Veliyath said that investors will be disappointed if they invest into the benchmark indices Sensex and Nifty. “2018 as a calendar year I feel is going to be more challenging for the Sensex and Nifty perhaps but at the same time a lot of people will be again disappointed. The same people who were cautioning last one year, will be again disappointed next year when they numbers come up,” the expert told ET Now.

Taking stock of the developments in the previous year Porinju Veliyath noted, “We had a wonderful year in 2017 not only in terms of stock picking, but even the broader index went up by 28-30%. It has been an amazing year. One thing I remember about 2017 is that the academic kind of investors had been cautioning investors throughout 2017 and a lot of them were waiting for a market crash, which never happened. But, I was confident throughout the year that there is a major change happening in the country in the structure of the economy and the markets and investors can make big money. I am very happy to see that ultimately it has happened.”

According to the Kochi-based investor the index will return about 10-15% in the year. “I do not think Nifty or Sensex can move up beyond 10-15% and that is because of the structure of the main indexes but otherwise again stock pickers are going to have good times. This calendar year we had around 80% return for my PMS clients, all of them put together on an average. Next year, I do not think something like that can be achieved, I will be very happy if we could make 35-40% return in 2018 which the index goes up by 10-15%,” Porinju told the channel.

Just last month, he had told in an interview to BTVi that investors can easily make 30-40% in the next one year, even though the Nifty may more only to 12,000 by August 2018. When asked about his take on Nifty by next Onam, the ace investor told the channel last month, “Its very difficult to predict, because of saturated business in the composition of Nifty and Sensex. I used to predict it as there is no other way to make people bullish. Nifty can be 12,000, but investors can easily make 40% return.” Porinju Veliyath often advises investors to stay away from stocks which have global brokerage firms covering them.