“I become better in bad time so that I become bigger in good time,” is the investment mantra that Motilal Oswal, the Chairman and Managing Director, Motilal Oswal Financial Services swears by.

Going by this philosophy, the company plans to invest in overhauling its business processes through ramping up its AMC, private wealth and retail broking segments in terms of employee headcount and city coverage.

What is your outlook on the Sensex this year?

For 2013 we are expecting a Sensex growth of 5 per cent and for 2014 our estimated Sensex PAT growth is at 15 per cent as we are optimistic about the macroeconomic indicators and higher corporate earnings growth next year.

What would be risks to the market?

The cause of worry for the market would be the fluid political situation, Government taking any populist measures and slowing down on the reform process. After Chidamabram took over as FM he pushed lot of reforms in a speedy manner which gave a lot of comfort to FIIs and DIIs, and he is travelling abroad to carry the right message. This flow should not get interrupted.

How are retail investors behaving in this market?

Retail investor segment is silent. In the last year we have seen about $26 billion worth of FII money coming in, but $13 billion of DII money has been sold off and rest is IPOs or retail investor segment who have been net sellers in market. This usually happens when equity markets are correcting, but this time retail investors have neither participated in the rise nor the fall.

What is your view on the Rajiv Gandhi Equity Savings Scheme?

  It is a good beginning from investment and tax saving perspective and its got fairly good numbers in a scenario where the overall equity market is still not exciting. Secondly, it takes a lot of time for the non-equity investors to put money in equities. Thirdly, equity still is not given its due recognition by the media.

Equity has become more of a hate word and is not appreciated as a respected asset class due to controversies, scams, manipulation giving equities a bad name. RGESS will take its own time as it is a new instrument.

  

What is the status of your efforts to rope in an international strategic partner for your AMC business?

  We are still in talks but after the exit of AMC player Fidelity, interest levels have dropped. We aim to gain a platform to manage offshore money into India from international markets mainly US and UK. Apart from AMC, we are also open to foreign partner tie-ups in our private wealth and investment banking business to gain strategic value.

Your I-banking business has been the biggest pain area with the segment revenue down to Rs 81 lakh for the fourth quarter from Rs 4 crore in the year ago period. What is the reason?

This business is all dependant on the market forces. IPOs and mergers and acquisitions have mostly stopped so very few transactions are happening and activity is very low. On a year-on-year basis we will not grow.

manisha.jha@thehindu.co.in

 

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