When asked whether global weakness could spill over into Indian markets, Srivastava dismissed the concern bluntly. “I can be Nostradamus or God, but I know one thing for sure that the US is a strong market, will remain a strong market,” he said, highlighting improving conditions in Europe as well. He pointed to a major regulatory shift in the region, adding that “they have changed their ESG norms completely for the companies… the woke culture which was killing the European companies is getting over.”
According to him, the combination of a strong U.S., a more pragmatic Europe and the emergence of next-gen sectors—from quantum computing to AI—is forming a powerful global tailwind. As he put it, “you do not need to feel pessimistic about the world market, believe me, you do not need to be.”
‘If you want to play AI — just invest in the US’
On whether Indian investors can tap into the AI boom from home, Srivastava offered a characteristically straightforward answer: “Well, you just invest in US. Government allows you to do it, just go and do it. It is as simple as that.”
He argued that India’s share of global market capitalisation — less than 10% — makes home-biased portfolios inherently limited. With newer avenues such as commodities, crypto and international equities becoming more accessible, he believes capital must flow outward, even if, as he put it, “it sounds unpatriotic and unbharatiya… but that is the reality of financial markets.”
Valuations: India’s ‘minefield’ vs global opportunities
The market veteran did not mince words on the valuation contrast between Indian stocks and global giants. Comparing expensive homegrown retail names to cash-rich U.S. tech majors, he remarked: “We are paying 90 PEs for ridiculous stuff in this country… And we are arguing with a company which is generating billions of dollars in cash in a global monopoly on a PE of 30.”If India sees the introduction of a full-fledged short-selling framework, the consequences could be dramatic. Srivastava warned that “you will see this mindful cracking apart like no tomorrow” and predicted that valuations of “90% of the stocks” may correct meaningfully.
Where India stands now
Despite his caution, Srivastava remains constructive on selective opportunities in India — provided investors stay nimble. Pointing to the surge in gold-loan lenders after regulatory changes and the long-term strength of the auto sector, he emphasised the importance of picking the right pockets.
But he also offered a warning lesson in market behaviour. Recalling the extreme Diwali premium on silver ETFs, he said investors must stay alert and “encash exuberance.”
Countering the belief that retail investors are the only ones who make mistakes, he added sharply, “Mutual fund managers can be equally dumb,” citing a recent case where institutions bought into a stock placement at ₹906, only to see it crash to ₹620 within weeks.
In his view, the next two years will separate disciplined investors from those trapped by sky-high valuations. “We will not have these 90 PE companies in the next two years I can tell you that,” he said, signalling a decisive shift ahead for Indian equities.
