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Porinju Veliyath, founder and CEO of Equity

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Intelligence joining in. Porinju, always

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a pleasure to have you on. Thank you so

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much for your time to us here at NDTV

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Profit and on India Market open. Um, all

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things considered, would you say 2025 in

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that sense for Indian markets has been a

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year of survival? Everything that is

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possibly going to be uh disrupting the

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market seems to have happened right from

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you know the uh the tariffs and all of

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those fears at the start. We're ending

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the year also without any resolution in

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sight maybe.

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Hi, thank you and good morning all.

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See I think the last one year maybe a

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little more than that I think India the

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broader market has been in a bare market

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I would say uh which is very important

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and uh we are seeing almost alltime high

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in the nifty

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um perhaps this is the most hated

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all-time high of nifty in the history of

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Indian markets you know the way uh the

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broader market underperformed

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consistently

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and uh maybe it's it's almost you know

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five six quarters has been happening.

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So, so it was a bad year for the broader

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market and most of the investors um

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despite the nifty staying strong because

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of the domestic liquidity uh mutual

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funds and the large funds are buying

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into the same uh large cap companies. So

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nothing wrong in that but I think there

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was very uh significant correction

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happened. Uh I don't know how long it

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will go further. um maybe it's already

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over or it's near to the bottom. So that

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way I think there is um hope for the

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2026 in the coming year. Uh we are going

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to see a lot of values emerging in many

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pockets. Already they are there are

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values though it is ignored by the

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market. Uh so 2025 was uh I would say

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for me it was bad. Even my fund has

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underperformed uh significantly to be

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frank. uh but we are very hopeful uh the

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value investing has the big relevance uh

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you know that uh we have to stick to the

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long-term India optimism

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so that is all I can say when we talk

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about the next year or the years coming

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up so there is scope there is um so

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that's what the investors in equity can

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do and that is very relevant that uh uh

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you know that long-term India optimism

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is very rational,

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>> right?

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>> So stick to that.

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>> Stick stick to that. Good advice,

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Purenju. Uh but on your portfolio level,

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where are you going out and doubling

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down? Uh and thanks for your cander

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because and it's not just you. I think a

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lot of fund managers have faced that

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pressure because of the broader markets

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and the way they've done. Uh you can

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have stock specific uh selections that

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have gone wrong. So where are you

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doubling down in anticipation of a

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bounce back in 2026?

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We will continue to be in the you know

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large small caps and midcap segment uh

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in general but note that we are against

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any large cap companies but you know the

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23 years of history uh equity

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intelligence has been mostly into uh you

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know quality midto midcap stocks or some

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of the uh small caps and many of them

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have gone 20 30 40 times and some of

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them have become large caps. So that's

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where you make a lot of money. But this

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kind of uh what do you call uh that

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cyclicality

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you know every strategy don't work you

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know all the time. So so uh our strategy

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was has been uh consistent and we will

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continue with that. uh there is uh

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enough u uh potential to create alpha uh

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especially from here next one year, two

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years or 3 years uh by sticking to our

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uh our uh core philosophy and strategy.

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>> Penju you know how do you see the whole

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pace of IPOs which have continued and uh

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we're set for a record number in the

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month of December as well. Do you see

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the primary market dominating the mind

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space es especially of retail investors

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all through 2026?

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>> I think it will continue. We will see

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new and new supplies, new segments, you

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know, which is not existing in the

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already listed space. New innovative

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companies, ideas, business models are

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going to come. So that's that's driving

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Indian economy itself. And from the

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policy maker side, they are doing a

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wonderful job in this regard. you know

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the kind of labor reforms what we are um

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we recently it has come up and you know

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those things are very very important uh

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now it's a win-win for everybody even

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the laborers are going to benefit it's

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going to be good for the uh for the

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business the entrepreneurs and you know

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a lot of small medium uh SMA companies

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um have been suffering with these labor

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issues there there was a tendency in

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many states you know being um harassed

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by the labor authorities. So I think

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this very comprehensive labor law which

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was very important and you know many

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things happening now like the GST

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rationalization

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or you know private sector allowed for

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the nuclear um business which is very

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important. So these things are going to

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drive new verticles, new opportunities.

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Some of the existing companies, listed

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companies are going to do well. I don't

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have want to tell any name but there is

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no much clarity. Some of them could be

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in the infancy in developing the uh new

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models and adapting to the new policies.

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So opportunities are there enough. There

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are many pockets. So investors should be

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smart enough to move with the uh that

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kind of an uh EOS ecosystem where the

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opportunities are popping up.

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>> Uh Penju uh just trying to get and I

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understand that you will have a bottomup

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approach to picking the stocks that you

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have but there must be some indications

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based on the uh sectoral bent that you

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might have right so you might prefer one

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or the other give us a sense of what

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your thinking is at this moment.

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See we all know everybody knows that you

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know there is a issue of um

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uh you know very richly valued markets

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in general in India.

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uh we all talk about the long-term India

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optimism but market sometimes you know

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it it uh uh discounts in much advance

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and some stocks some managed stocks some

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operator-driven stocks they take

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advantage of that you know so we'll be

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always surprised how this stock can at

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you know 20 times sales and 300 400 P so

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it's basically they are betting on the

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future optimism investors but whatever

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said and done you know a lot of uh

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things happening in the market in the

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IPO was talking about the IPO itself so

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the domestic liquidity that is like

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never before

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I don't know N may be remembering I have

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been talking about this power of

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domestic

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uh fund flow the potential of fun flow

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into the equities uh so that has been

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happening now

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>> and this will continue

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>> many many more households the middle

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inome households they want to get a pie

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you know that growth of Indian economy

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and they are investing in equities the

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SSP SIP was a wonderful model uh you

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know with the financial inclusiveness so

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I think India is um firing on all you

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know

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in with regard to the

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>> I'm I'm going to have to ask you to stay

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on because we need to address the rupee

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right now and you know I'm going to come

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back and actually get your view on this

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as well from you uh Purju And you know

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since since we have you while we're

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talking about the context of the rupee

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are factors like this a dampener for

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equity investors

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>> uh you talking I did not hear the

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interview it's about rupee

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>> yes yes rupee at new record low of 8985

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against the USD

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>> uh I don't think it will be a big uh you

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know uh

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>> it's not a negative it's not a negative

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for

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>> I don't think this has been happening

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all the last many decades

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>> yeah but 90 we're at 90 Now for Inju

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>> yeah I remember when it was 4 rupees you

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know so that so it has been moving all

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the way up so this I'm not an expert to

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be frank about the forex or how the

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>> no but you think you think for equity

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markets it doesn't make a difference

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>> I I don't think now our our challenges

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or the good positives are much uh bigger

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and very different uh you know all of us

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know that relative valuation of uh India

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today is high but in because of the

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correct of the last one year or more uh

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of the broader market. So it has become

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reasonable today mostly. So a lot of

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stocks many of them you know hundreds of

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stocks are at 30 40 some of them 50%

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below their one year high earlier high

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so this gives an opportunity for you

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know very selective stock picking it's

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again I am telling this is India is

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again a heaven for the you know that

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cherry picking uh style. So there is no

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doubt that stock picking is going to do

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very well in 2026. It will be bouncing

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back. Got it.

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>> A lot of worthy stocks are going to

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bounce back. Some of them may go 50%

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higher or some of them may double in the

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next one year. But I don't think index

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nifty can go more than 5 10% in 2026.

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Mhm. So purinju I've just walked in and

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I just want to know because the peg of

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our next piece is that as to how's the

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jo I'm presuming from your answer that

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the josh is very high in in your in you

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right now for Indian markets.

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>> Yes n uh it has see it has been reducing

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because of the valuation we have to all

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agree with that. So a lot of people have

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started investing abroad now in the

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global companies thanks to gift city and

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you know that ecosystem allowing even

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small investors who want to take an

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exposure. If you feel the valuation in

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India is very high or unsustainable,

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there is an option today for the Indian

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investors. Uh but I feel uh the Indian

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stocks are still very hot and it will

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continue to be at the same time you know

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people who do momentum trading and you

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know new investors should be worried

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about the 50 60 100 200 PU stocks only

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10% of them will deliver going forward.

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the remaining 90% make have severe

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correction or there can be long-term

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time wise correction time correction so

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people should not just take I was just

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listening to Rajifer PPFS was talking

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about uh you know uh the boiling frog

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syndrome

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something trading at 2530 and they go on

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being comfortable go to 30 30 40 and 50

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60p people don't you know realize uh

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what is it

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>> that's true

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>> so invest They should be cautious and

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conservative even even after this last

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one-year correction in the broader

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market.

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>> Makes sense. Okay. Well, that's a

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constructive pinguad but cautioning at

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the right notes as well. And Purinju

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thank you so much for taking the time

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out and being with us today. On that

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note, really appreciate your time.

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>> Yeah, thank you Nage uh and Alex the

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team. Uh wonderful talking to you guys

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as always. As always, put in

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>> [music]