While the Centre has been unveiling a deluge of reforms, the markets have continued to see intense volatility. Bloomberg TV India caught up with Equity Intelligence India MD Porinju Veliyath to get an insight on value investing in choppy market conditions.

What’s your overall reading in terms of market environment and sentiment now?

The market sentiment now is not very good. But at the same time, I am very optimistic and bullish on Indian markets going forward. From the stock picking point of view, even the last one year was excellent and many investors will vouch for that. But people who generally following the Nifty and the Sensex, they didn’t have a good time, which is true.

I think investors are going to witness tremendous and more-than-expected economic reforms going forward. There are already many reforms that have been announced, many of them are under implementation, many are going to come and the winter session of Parliament is about to start. A lot of excitement is going to happen in the Indian markets and investment environment. Despite the various minute or small negatives discussed by vested interests, India is progressing. We have to give time to the government.

Now people who want to criticise are talking about the exports coming down. Exports coming down are a natural process because of the global slowdown. We have to see the big picture and I am telling to you there is no reason to be bearish. In fact, the bears are running after stories.

Hopes over the GST Bill have been revived after the Finance Minister’s commentary. What are your thoughts?

I think in this winter session the Congress cannot play spoilt-sport. I expect that many important reforms will go through and that is going to make the sentiment turn around the stock market.

You have tweeted that one should make his or her own Nifty or own index. How many stocks should you put into that?

I love a 10-stock portfolio. We have around 650 clients and the average number in a portfolio will be 10 stocks — you can say it is a concentrated portfolio. Following the Nifty is easy and anybody can do it. You don’t need any special skill or expertise or knowledge or wisdom. In the last one year, the Nifty is down 6-7 per cent, my clients on an average are making over 40 per cent return. I am not a Nifty fan. I am making my own index.

All serious investors who want to pursue value investing, should make their own portfolio — the development in those companies, the progress in those companies, how they are managed and how they are creating wealth for you — that’s the only thing important for you.

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