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6 episodes with nilesh shah
3 episodes with nilesh shah
3 episodes with nilesh shah
India Shoots Down F-16 in Escalating Air Conflict In a dramatic escalation, India's air defence systems went full throttle Thursday night, downing a Pakistani F-16, two JF-17s, and a Pakistani AWACS inside Punjab province. The air battle followed Islamabad's coordinated strikes on Indian military locations in Jammu and Punjab. Drones were also intercepted in J&K and Rajasthan, with one striking Jammu Airport. India's S-400 systems thwarted eight incoming missiles across key border areas. The Integrated Defence Staff confirmed no casualties, calling the response “by the book.” The attacks came just days after India's Operation Sindoor targeted terror bases in Pakistan and PoK, placing the region on high alert. Markets Turn Cautious Amid War Clouds While panic didn't grip the markets, investors showed signs of nervousness after reports of Pakistani missile strikes on Indian targets. The Nifty fell 0.6% to 24,273, and India VIX surged 10% to 21.01, reflecting volatility. The put-call ratio (PCR) hit a record 1.89 before settling at 0.86 by day-end, as traders unwound risky bets. Analysts flagged this as heightened caution. Still, long-term bulls like Mirae's Swarup Mohanty and Kotak's Nilesh Shah believe the skirmish won't derail markets for long—and might offer buying opportunities. Adani's Himalayan Power Play with Bhutan Adani Group has inked a strategic MoU with Bhutan's Druk Green Power Corporation to jointly develop 5,000 MW of hydropower. Building on their ongoing 900 MW Wangchhu project, the deal aligns with Bhutan's 2040 clean energy roadmap. Adani will ensure power offtake via India's commercial markets, reinforcing Bhutan's central role in regional energy trade. With Tata Power and NHPC also eyeing Bhutan, the stage is set for a South Asian hydropower boom. Trump Hints at Major UK Trade Deal Donald Trump teased a “major trade deal” announcement at a press conference, likely involving the UK, according to Reuters and Financial Times. The deal could scrap Britain's 2% digital tax and see U.S. tariffs on aluminum, autos, and steel lowered. Talks with India are also on the table but face “a twist.” Trump claimed multiple nations are eager to negotiate. Markets reacted mildly positive, with S&P 500 futures up 0.5%, even as the 145% tariff wall on China remains untouched. Mumbai Flyers, Brace for Higher Airport Fees From May 16, flying out of Mumbai's Adani-run CSMIA will cost more. For the first time, domestic passengers will pay ₹175 on departure and ₹75 on arrival. International travellers face a steeper hike—₹695 and ₹304 for business class, ₹615 and ₹260 for economy, over 200% higher than current rates. AERA justified the hike citing upgraded infrastructure. The fee changes come amid Terminal 1's planned demolition, which is expected to temporarily dip traffic, with a rebound anticipated once Navi Mumbai airport opens.
On Episode 538 of The Core Report, financial journalist Govindraj Ethiraj talks to Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company as well as Shankhadeep Mukherjee, Principal Analyst at CRU.SHOW NOTES(00:00) The Take(05:38) The stock markets were up 3,000 points last week, on a strong holding pattern(07:33) Rupee is strong, forex reserves hit 3 month high(08:07) Iraq, 2nd largest OPEC oil producer, to hike output too(09:51) India's bottom of the pyramid needs more institutionalised investment options, Kotak Mutual Fund(27:49) India wants to impose a 12% duty on steel imports, where could that go?Listeners! We await your feedback....The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to shiva@thecore.in for sponsorships and brand studio requirementsFor more of our coverage check out thecore.inJoin and Interact anonymously on our whatsapp channelSubscribe to our NewsletterFollow us on:Twitter | Instagram | Facebook | Linkedin | Youtube
Indian stocks and the rupee ended the week on a high, Apple is ramping up hiring for its India expansion, and Tata Capital is preparing for a massive ₹15,000 crore IPO. Meanwhile, SEBI's new chief has approved LG Electronics India's public listing, and Kotak's Nilesh Shah calls for a ‘Chanakya moment' to attract foreign investors. Plus, what Accenture's results signal for Indian IT. Tune in for the top stories of the day!
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, November 11, 2024. This is Nelson John, let's get started. You know it's a bear run when even fund managers are worried about earnings. Nilesh Shah, the managing director of Kotak Mahindra Asset Management, discussed about earnings growth estimates for FY26 with Mint's Ram Sahgal. The current quarter is likely to benefit from higher government spending and seasonal sales, but earnings growth is projected to be only around 5%. This doesn't bode well for the markets, Shah said. The recent stimulus package by the Chinese government into its markets is another cause for worry. But he isn't entirely pessimistic: Shah said that despite recent selling by foreign investors, a rebound might be possible given the strong earnings growth of Indian companies over the past decade. Today, COP29 commences in Azerbaijan. The Conference of Parties has established itself as the premier event to discuss global warming. Sayantan Bera writes that key discussions will focus on a climate finance deal essential for supporting poor and emerging economies in transitioning to clean energy. These countries will require an estimated $2.4 trillion annually. India, the third-largest emitter, is expected to advocate for increased climate finance while balancing its energy needs, he adds. How will Donald Trump's victory impact your portfolio? In the west, the immediate aftermath of the results saw a spike in stocks on Nasdaq, as well as Bitcoin. However, Abhishek Mukherjee writes that this euphoria was short-lived. Investors began to assess the potential implications of Trump's policies on the economy and markets worldwide, including in India — leading to massive sell-offs. Despite some initial concerns, the Indian IT sector stands to gain from Trump's proposed economic measures. Tighter immigration policies, however, may hurt Indian companies and they might have to hire US citizens to ease that burden. The Reserve Bank of India doesn't want banks to dole out too many unsecured personal loans. This has spurned a surge in gold loans. September saw an increase of 51% in the disbursal of gold loans. Shayan Ghosh and Anshika Kayastha write that the outstanding gold loan base stands at ₹1.5 trillion. However, this is quite small in comparison to the personal gold loan base, which is a mammoth ₹14.3 trillion. Encouraged by a 16% increase in gold prices, borrowers are finding that a more attractive option over personal loans. There are concerns over this trend, and RBI might yet have something to say about the rapid increase in gold loans. Electric three wheelers are about to get expensive. The government announced that the annual cap for subsidies for three wheelers has nearly been reached, as sales have exceeded expectations so far this year. Alisha Sachdev writes that this will increase the prices of EV three wheelers by 15 to 18%. Major manufacturers including Mahindra Last Mile Mobility and Bajaj Auto have expressed concerns about the impact on demand. They told Alisha that a temporary sales slump would be dangerous for the adoption of EV three wheelers in India. They are also lobbying the government to create a more flexible incentive structure to accommodate the growth in demand.
"Our time has come, but we must kick the ball to score the goal." In this episode, Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company, shares his insights on India's remarkable economic growth, challenges ahead, and the key risks investors should be aware of. He also highlights his takeaways from the recent Union Budget and Economic Survey Report.This episode is hosted by Rishabh Saksena, Head of Investment Specialists Asia at Julius Baer.
Welcome to our Podcast which is all about Investing Wisdom! In this Second Episode of Season 2, we kick off with an insightful discussion with the MD of Kotak Mahindra AMC. Mr. Nilesh Shah. We dive deep into understanding the nuances of Indian Economy V/s. The World Economy and what would lead India to become the VISHWA GURU by 2047 Topics covered in this episode: - The World Economy today vis-a-vis the Indian Economy - India's position in the World Economy today - Reasons for the slow growth of India compared to other developed nations - How the combination of talent, capital, and infrastructure is creating the growth story for India - The growth trajectory of India in the next 5 years - Understanding VIKSIT BHARAT - 2047 - The story of Lord Mahavir & Chandkaushik and its lessons - The importance of growth, governance, and green initiatives - The definition of good business - Explaining the "dirty float" - Mutual funds as a capable and transparent tool for achieving long-term goals - Indian equities vs. Chinese equities - Mutual funds vs. other asset classes - Concentrated vs. diversified portfolios - Managing the psychology of investors - Maturity of investors in India - Willingness of people in India to give back to society Tune in for an episode filled with valuable insights and strategies to navigate the evolving economic landscape. Don't forget to like, share, and subscribe for more episodes!
In this episode of Market Minutes, Zoya Springwala talks about the key factors to watch out for today before the domestic market opens. The exit poll prediction of a sweeping victory for the BJP is likely to make the markets zoom in trade on Monday, maybe even reclaim the 23,000 level. Also, catch Nilesh Shah, MD, Kotak Mahindra AMC on the Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, key data points, and developing trends.
In this episode of Political Economy with Shweta Punj, Nilesh Shah, MD, Kotak AMC, explores the past decade, discusses reforms and their impact on investor returns. In the last decade, India has vigorously pursued an India-centric approach, focusing on enhancing its digital ecosystem - which, according to Shah, surpasses that of the developed world. Shah emphasizes that while retaining talent and implementing reforms such as IBC have been transformative, the next government must focus on both ease of living and ease of doing business. He also suggests a focus on enhancing contract enforcement and strengthening judicial infrastructure, and likens the plight of Indian entrepreneurs to that of Abhimanyu trapped in a chakravyuh.
In this episode of Market Minutes, Zoya Springwala talks about the key factors to watch out for today, from the Mamaearth bulk deal, Bank of India's QIP to the global market set up. Also, catch Nilesh Shah, Kotak AMC on the Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, key data points, and developing trends.
Global slowdown and an increased scrutiny has put an end to India's roaring startup party. From minting new unicorns almost every week, we have just one this year so far. But there are signs of thaw in this funding winter. And this time, desi businessmen are leading the charge. But who are these new saviours of Indian startups? Startup founders can also learn a lot from traditional businesses. There is no end to the success stories of Indian entrepreneurs. One such leading figure passed away last week. Prithvi Raj Singh Oberoi, who was famous as Biki Oberoi, has left behind a legacy that will inspire people for years to come. But what after him? What next for Oberoi Group? Meanwhile, Oberoi Reality's recent move to enter Delhi-NCR market pushed its share by over 4% this week. Moving on, shares of Manappuram Finance and Muthoot Finance have been in demand on the bourses, ever since the duo announced their September quarter results. The shares have jumped up to 13 per cent as against 1 per cent rise in the benchmark Sensex index. As gold prices continue to rise, will the rally in gold financiers continue? Or will it lose its steam amid the RBI's recent directive on unsecured loans? Interestingly, part-time member of the Economic Advisory Council to the PM, Nilesh Shah, isn't impressed by Indian's love for the yellow metal. Shah claimed this week that India's dream of becoming a 5 trillion-dollar economy could have been achieved “long before” if not for the habit of importing gold. Well, many would disagree, as it's an age-old debate. Moving on, another age-old debate is echoing in the Supreme Court chamber. Four opposition-ruled states have approached the top court, alleging governor's overreach. In this episode of the podcast today, we tell more about the recent controversy and also decode the governor's power.
Nilesh Shah is Managing Director, Kotak Mahindra Asset Management Co. Ltd. He has over 25 years of experience in capital markets, having managed funds across equity, fixed income securities and real estate for local and global investors. In his previous assignments, Mr. Shah has held leadership roles with Axis Capital, ICICI Prudential Asset Management, Franklin Templeton and ICICI Securities. He was the recipient of the inaugural Business Standard Fund Manager of the Year – Debt award in 2004. He also was part of the teams that received the best fund house of the year awards at Franklin Templeton as well as at ICICI Prudential. Mr. Shah is a gold medallist chartered accountant and a merit ranking cost accountant. His hobbies include reading and educating investors on financial planning.
In this episode of Paisa Vaisa, Anupam Gupta welcomes Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Co. Ltd. With a rich background in economic advisory for the Prime Minister and now as a part-time member of the Aadhar project (UIDAI), Nilesh Shah is a true financial expert. He shares his insights into the evolving Indian stock market, highlighting the shift from convincing people to invest to a willingness to participate, which he considers a game-changer. Additionally, he discusses why foreign manufacturers prefer China over India and the evolution of retail investing in the country.Connect with Nilesh Shah on LinkedIn Get in touch with our host Anupam Gupta on social media:Twitter: ( https://twitter.com/b50 )Instagram: ( https://www.instagram.com/b_50/ )Linkedin: (https://www.linkedin.com/in/anupam9gupta/ ) You can listen to this show and other awesome shows on the IVM Podcasts website at https://www.ivmpodcasts.com/See omnystudio.com/listener for privacy information.
I talk to Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company. Nilesh has over 31 years of experience in capital markets and has managed funds across equity, fixed income and real estate for Indian and global investors. While this is my first interaction with Nilesh, I have looked up to him for the last 20 years, ever since I took my first steps in the investment industry in 2003. In this episode, Nilesh talks about the transformation of India, lifelong learning, importance of humility in investing, spirituality, and much more. * * * Subscribe to The One Percent Show on - Youtube - https://www.youtube.com/c/vishalkhandelwalshow Spotify - https://open.spotify.com/show/1iLAoxJuJRDQk8WzYtqVly Google Podcasts - https://podcasts.google.com/feed/aHR0cHM6Ly92aXNoYWxraGFuZGVsd2FsLmxpYnN5bi5jb20vcnNz Apple Podcasts - https://podcasts.apple.com/us/podcast/the-one-percent-show-with-vishal-khandelwal/id1572196422 Amazon Music - https://music.amazon.com/podcasts/d09a0a7d-2283-45b3-930c-cd28eaa6f8de/the-one-percent-show-with-vishal-khandelwal To know more about this initiative, check out: https://www.vishalkhandelwal.com/ https://www.safalniveshak.com/ * * * To know more about my book - The Sketchbook of Wisdom - which Morgan Housel calls "a masterpiece," please visit - https://book.safalniveshak.com/
In this week's Current account episode, Hamsini Karthik is joined by Nilesh Shah, Founder and CEO of Envision Capital. The discussion centres around the recent market developments, particularly the impact on global markets due to bond downgrades in the US, contrasting with the stable situation in Indian banks. The dialogue delves into the concept of interconnectedness among global banks. While some level of interconnectedness exists, it's not as pronounced as it was during events like the Global Financial Crisis. The degree of interconnectedness often depends on the severity of the crisis and the potential impact on sentiment rather than just fundamentals. Nilesh Shah discusses the robust performance of India banks in recent quarters. He emphasises that banks are well-capitalised, asset quality is strong, and there is demand for credit. Despite some challenges, such as increasing deposit costs and shifts in deposit types, banks are currently in a favourable position. The conversation touches upon the Reserve Bank of India's recent move to introduce incremental capital and its potential impact on net interest margins (NIMs). Nilesh Shah explains that while there might be a slight compression in NIMs due to rising deposit costs, the overall environment remains supportive. Regarding investment prospects, Nilesh Shah cautions that the exponential gains witnessed in the past might not be replicated in the near future. He suggests that banks' performance will be closely tied to loan book growth, credit cost management, and improvement in return metrics. The discussion concludes on an optimistic note, highlighting the resilience of Indian banks and their ability to navigate challenges with the support of prudent regulations and central bank measures. --- Send in a voice message: https://podcasters.spotify.com/pod/show/business-line/message
In this episode of Market Minutes, Shailaja Mohapatra talks about why MTAR Technologies, La Opala will be in focus today. IKIO Lighting IPO opening for subscription is another key event to track. Also, catch Nilesh Shah of Envision Capital, in Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, keys data points and developing trends. (With inputs from Shivam Shukla and news agencies)
At the Mint India Investment Summit 2023 held recently, Nilesh Shah, MD, Kotak AMC; Jiten Doshi, co-founder and CIO, ENAM Asset Management; Saurabh Mukherjea, founder & chief investment officer, Marcellus Investment Managers; and Roshi Jain, fund manager, HDFC AMC discussed resilience of the Indian economy and how stock market is fairly priced.
In this episode, Mint's Jash Kriplani spoke with Nilesh Shah, MD & CEO of Kotak Mahindra Asset Management, on what investors should expect from equity markets going into 2023
Nilesh Shah is perhaps one of the best debt fund managers India has ever had. Not only did he rack up great returns, Nilesh once told investors in his fund to redeem their monies as the future was likely to be bleak. That's quintessential Nilesh for you. Always focused on his investors. Nilesh is a big believer in the India story. As he puts it, India's GDP grew 10x in the last 25 years. And he believes that a 10x will happen again. Listen in to understand how to play this opportunity...
In the latest edition of the Now You Know Akron podcast, Akron Beacon Journal consumer columnist and medical reporter Betty Lin-Fisher speaks Dr. Nilesh Shah and Laura McElrath to preview the upcoming Akron marathon. During this edition we talk who comes out for this event and the different type of athletes that will be running and or walking in this event. Finally, we hear tips and advice for all ability levels provided by these experts.
In the latest edition of the Now You Know Akron podcast, Akron Beacon Journal consumer columnist and medical reporter Betty Lin-Fisher speaks Dr. Nilesh Shah and Laura McElrath to preview the upcoming Akron marathon. During this edition we talk who comes out for this event and the different type of athletes that will be running and or walking in this event. Finally, we hear tips and advice for all ability levels provided by these experts.
We always took them for granted. They were the sidekicks in tetra packs, glued somewhere on the back. But, suddenly, the humble straw has taken the centre-stage. If the government doesn't relax its July 1 deadline to phase out single-use plastic from the country, you are going to miss the straws badly. And so will FMCG companies-- which are now scrambling to find a replacement, their paper version. Our next report offers an insight into the world of plastic straws and tells why small packs of your favourite Frooti and Real juice might disappear from markets for now Meanwhile, let us turn our focus to a case which might turn out to be a straw in the wind. A labour court in Chennai recently asked IT giant Tata Consultancy Services to reinstate a former employee and clear all his past dues of seven years. Some experts believe that this case could become a reference point in performance-related unlawful terminations in the IT industry. After the labour laws, let us move on to markets. Will the policy-makers in a move to catch up with reality and surging inflation may overdo things and cause much more damage to the economy and markets than what is needed? Will the next six months be even more painful for the Indian economy and markets? Business Standard's Puneet Wadhwa caught up with Nilesh Shah, Group President & MD, Kotak Mahindra AMC on his interpretation of the developments and how investors should approach the markets. Like the markets, some dark clouds of uncertainty are hanging above the country's economy too. But, beams of sunlight shining through the cracks are offering hope too -- that good days are ahead. The finance ministry recently said that India is at low risk of stagflation. But it also cautioned about a twin deficit problem that the country may face. This episode of the podcast tells more about it. Watch video
Mint asked Shankar Sharma; Nilesh Shah, group president and MD of Kotak Mahindra Mutual Fund; Deepak Shenoy, founder and CEO of Capitalmind; and Nikhil Kamath, Co-founder, Zerodha, whether this is a buyer's or a seller's market.
Here's a look at the relative advantages of equities and mutual funds as investment options, as explained by Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, on a special edition of Simply Save, Moneycontrol's very own personal finance podcast, presented by Kotak Mutual Fund and hosted by Kayezad Adajania.
As LIC prepares to go public, it will now divert a chunk of its profits as dividends for shareholders at the expense of policyholders. Concerns also remain over its reliance on agents and manual processes in a digital world. Should you subscribe to the IPO? Host Anirban Chowdhury finds out with Nilesh Shah, MD of Kotak Mahindra Asset Management Co., and veteran management consultant Ashvin Parekh. Credits: NDTV
Global Policy Watch: Who’s Afraid Of Stakeholder Capitalism?Insights on global issues of the day- RSJSometime in late 2019, Alan Jope, chief executive of Unilever, the global food and cosmetics giant, declared that brands without an evangelical purpose of contributing to society will soon face extinction. As the Guardian reported then:Alan Jope, Unilever’s chief executive, said it was no longer enough for consumer goods companies to sell washing powders that make shirts whiter or shampoos that make hair shinier because consumers wanted to buy brands that have a “purpose” too.“Can these brands figure out how to make society or the planet better in a way that lasts for decades?” said Jope, outlining the company’s thinking. Unilever is not working to a set timetable but Jope, who took over from Paul Polman in January, said it was possible that a brand or even whole product category “is not going to be able to find its purpose”.His comments raised the possibility of the company selling off profitable brands, potentially hurting the bottom line, but Jope said: “Principles are only principles if they cost you something.”This looked good. I mean we all want businesses to have more social responsibility. Here was a CEO willing to take a long view of what’s good for society and let go of short-term gains. How are things going for Alan Jope now? Well, here’s Nils Prately writing in the Guardian last week:Unilever is frustrating its shareholders. Last year’s stock market “rally in everything” bypassed the consumer goods giant entirely. The shares fell by a tenth and, at £39.42, stand roughly at their level of five years ago, soon after the group adopted a supposedly energising cost-cutting and deal-making overhaul in response to its close encounter with Kraft Heinz’s financial engineers. Perhaps, the most entertaining rebuke came from fund manager Terry Smith:“Unilever seems to be labouring under the weight of a management which is obsessed with publicly displaying sustainability credentials at the expense of focusing on the fundamentals of the business.A company which feels it has to define the purpose of Hellmann’s mayonnaise has in our view clearly lost the plot. The Hellmann’s brand has existed since 1913 so we would guess that by now consumers have figured out its purpose (spoiler alert – salads and sandwiches).”Heh!But this isn’t an isolated instance of a corporation grandstanding on contribution to society as its purpose. And a lot of it is driven by other shareholders who value it more than, say, Terry Smith above. For instance, Blackrock, the world’s biggest investment manager, that owns like seven percent of every public company out there, has made ESG (environmental, social and governance) metrics a priority for their investment decisions. Over the last few years, Larry Fink, the chief executive of Blackrock, has emerged as the most influential voice on the role of business in driving the sustainability agenda. This has meant Blackrock cutting back its investments in enterprises that are seen to be bad for environment and sustainability. But this has not been without a backlash. The Republicans and their supporters see this another sign of ‘wokeism’ dominating business agenda. The more left leaning wing of Democratic party feel this is all lip service and Blackrock is not doing enough to push sustainability. There’s also the usual chorus about should it be elected lawmakers who must drive this or an unelected powerful businessman regardless of their good intentions? Plus, there’s been the usual unintended consequences. The throttling of investments into thousands of firms that have business models that still leech off environment while being hugely profitable has increased the spreads on their bonds giving an opportunity to other investors to profit. Also, with so much investments going into ESG, some sort of a ‘green asset bubble’ has been formed with businesses of all stripes positioning themselves as green and sustainable to free ride into billion-dollar valuations. These things usually end up badly for everyone. So, in his latest annual letter to CEOs titled ‘The Power of Capitalism’, Larry Fink seems to suggest he’s moderating things a bit. He starts off in the usual fashion defending the focus on stakeholder capitalism (i.e., thinking beyond shareholder profits):Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism. He continues with his call for net-zero goals and finding a purpose beyond profits but there’s a subtle shift in tone:In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders. It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long-term. Make no mistake, the fair pursuit of profit is still what animates markets; and long-term profitability is the measure by which markets will ultimately determine your company’s success.Purpose Of CapitalWe talk about the role of capital often here. What purpose must it serve in society? How should policies be drafted to channel it for all round, sustainable progress? These aren’t new questions. Adam Smith mulled over it. Marx wrote a whole book thinking about it in ways that were original and revolutionary. That they were fundamentally unsound is a different thing. Unpaid labour is not the source of surplus value in capitalism, like he thought. There was a pause in thinking about capital in a deeper way during the first half of the 20th century. The two world wars and the great depression created the field of macroeconomics that concerned itself with questions of managing the national economy. The early Austrian school economists went the other way in thinking about the micro - a rational individual, her utility from a product or a service and her actions to maximise it. While economic thought about the nature of a firm was around during that time, most notably in the works of Ronald Coase, it wasn’t mainstream. Only in the 60s when American capitalism produced a boom rarely seen before in history did economists turn their attention to the nature of wealth creation in society and its purpose. Of course, the most famous of the economists among them was Milton Friedman. We have written about Friedman before. After a lot of soul searching, Friedman concluded:“But the doctrine of “social responsibility” taken seriously would extend the scope of the political mechanism to every human activity. It does not differ in philosophy from the most explicitly collectivist doctrine. It differs only by professing to believe that collectivist ends can be attained without collectivist means. That is why, in my book “Capitalism and Freedom,” I have called it a “fundamentally subversive doctrine” in a free society, and have said that in such a society, there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception fraud.” The role of any business is to maximize shareholder value in a legal way. That’s it. Everything else can be counted as good intentions but will have unanticipated consequences. Shareholder value maximisation, on the other hand, checks all the boxes of a good metric for three reasons.A simple and measurable metric: The shareholder value maximisation goal is easy to set and monitor. It helps that there is a common understanding of the metric. The alternatives are amorphous. It is difficult to understand what does maximising societal value entail, for instance. Who will define what society wants? Are societal objectives of India and the US similar?Rewarding the risk-takers: The shareholders invest risk capital in an enterprise. This willingness to take risk is what leads entrepreneurs to build new products, satisfy the consumers and create new jobs. The shareholders deserve the pursuit of maximum return by the firms for this risk they undertake. It is up to them what they do with these returns. They can invest it in newer enterprises or use it to improve society as they deem fit. The management or anyone else should have no claim on how to invest the returns that belong to the shareholders.Shareholders are the residual claimants: Everyone who contributes to the value creation of an enterprise – the employees, the management team and the customers – get their fixed claim on the value through compensation for their efforts, stock options and the value derived from the products or services offered by the enterprise. Whatever is left is for the shareholder. Only when these fixed claimants are served well, the value for the residual claimant (the shareholder) is maximised. So, the pursuit of shareholder value will by itself serve the other stakeholders well.Doing One Thing WellThe Global Financial Crisis (GFC) wasn’t good for the Friedman doctrine. The massive ‘financialisation’ of business, the loosely regulated nature of financial markets which allowed for the excesses and the bailouts which saved those who had brought about the crisis were seen to be a product of Friedman’s profit maximisation philosophy. Since then controlling free markets and unbridled capitalism as ideas have found favour in most capitalistic societies. More so among the young. And in the last few years, we have had ESG added into the mix. Corporations are now supposed to do things that will serve the interest of the environment and sustainability in the long run. It sounds good and who can argue with it. But like all good intentions, it is hard to implement and runs the risk of doing just the opposite. One, beyond profit maximisation, the shareholders will have heterogenous objectives and time horizons for their investment. The definition of what’s good for humanity will be amorphous among them. Should a company increase its costs of production by adopting ‘green’ practices and make losses in the next five years in the hope that it will eventually make more profits in the long run because of this shift? Will all shareholders reward the management for this? Seems quite unlikely. Some shareholders will have shorter time horizons. Others will disagree on what’s truly ‘green’ and a few might even ask if climate change is for real. Two, the management which is the agent of the shareholders running the business has an incentive to have shareholders with ambiguous objectives. The classic management defence for short-term underperformance is we are building things for the long run. Nothing is more long-run than saving the earth seen from the perspective of the management annual performance cycle. The more ESG pressure that shareholders bring about on the management, the easier it is for them to include the long-term indeterminate objective of saving the earth in explaining their decisions and performance. There is already a danger that a lot of management teams have embraced this notion of purpose (like for mayonnaise) for performative reasons. They know talking ESG is good for the stock in the short term. Or, there is an incentive to explain away their lack of near-term performance to the pivot of being ESG friendly. Neither is good for society.Three, the core management problem in an enterprise is how to allocate capital among the many competing priorities in an enterprise. This is a prioritisation problem that takes a lot of skills to get right - understanding the financial returns of different products and markets, anticipation trends in consumer behaviour, figuring out competitors and regulatory environment. Managers spend their careers learning to get this right. Most fail in the long run which is why corporate mortality is so high - maybe 10 companies or fewer have survived among the top 100 U.S. enterprises from about 50 years ago. Now to burden them with a variable that’s not just difficult to quantify or predict but also is freighted with political and personal beliefs will only make decision making more difficult. More likely than not they will get it wrong. It is for these reasons Friedman’s doctrine remains the most elegant and practical way for firms to pursue its objectives that deliver the most value to society. For Friedman, enterprises in a competitive market pursuing shareholder maximisation will do well for society. The policymakers should work on frameworks that create the right incentives for shareholders and the management to do so while serving the long-term interests of the society. The management then works within it. It isn’t for the management or for the shareholders to optimise for objectives beyond that. The shareholders can take those returns and do what they believe is best for the society based on their beliefs. Somewhere in that Fink annual letter is a muted acceptance of this idea. PolicyWTF: One Person, One Hand BagThis section looks at egregious public policies. Policies that make you go: WTF, Did that really happen? - RSJ This caught my attention yesterday (from the Business Standard). Yes, there’s a guideline to enforce one handbag rule as cabin baggage in flights. In a memo, BCAS (Bureau of Civil Airport Security - who knew there was this too?) said: “It has been seen that an average passenger carries 2-3 hand bags to the screening point. This has led to increased clearance time as well as delays, congestion and inconvenience to passengers. It is, therefore, felt that enforcement of the aforesaid circulars must be ensured by all stakeholders,” it added. Like those hold-all bags my family used to carry during rail travel in three-tier compartments, there’s a lot to unpack here. Congestion has been a problem for long in Indian airports. In fact, the pandemic has meant lower congestion than usual. So, how did this problem and this solution present itself to the Bureau? Here’s the answer from the same report:People aware of the development said a few parliamentarians had complained to Civil Aviation Minister Jyotiraditya Scindia regarding congestion at security checks. Following that, the regulator was asked to implement steps to ease congestion.“We had a meeting with the representatives of airlines and have told them to impose the rule. It takes more time to clear multiple bags,” the security agency said. Ah! Few parliamentarians complained. I’m unsure if they were held up because of congestion because there’s usually a separate VIP channel in all Indian airports. Maybe the number of VIPs have proliferated to such an extent now that there’s congestion in that queue too. It ain’t easy to be a VIP these days. Anyway, the solution that we have come up is two-fold. Quoting the report again:“All airlines and airport operators may be instructed to take steps to implement ‘One Hand Bag rule’ meticulously on ground to ease out the congestion and other security concerns. Airlines may be made responsible and depute staff to guide passengers and check and verify their hand bag status before allowing the passenger for pre-embarkation security checks, “ the memo added.And the second solution:Besides, airlines were also asked to change flight timings so that too many flights don’t arrive or depart around the same time to prevent overcrowding at airports. However, the idea was dropped after airlines opposed this saying changing flight timings in between an ongoing schedule will not leave flexibility and force them to cancel flights, leading to chaos.Thankfully, the second solution was dropped. On to the first solution about enforcing the one-bag rule strictly. So, what will people do? They will be forced to check in their luggage to comply with this. And that will mean the baggage check-in queues will be congested which takes even more time than the security check queue. This is the Indian flyover solution. Build a flyover to solve for congestion and soon realise the congestion hasn’t eased. It has only moved to another location. What about the real solutions? Like thinking about better queue management processes, figuring out queuing patterns during different hours of the day and week based on data and planning capacity to manage the peaks or increasing the capacity for security checks - there’s not a word on these.It is a chhota story. But it has everything that you need to know about public policy in India. India Policy Watch: The Problem with ProtectionismInsights on burning policy issues in India— Pranay KotasthanePolicy success, like beauty, lies in the eyes of the beholder. One such policy success that’s been talked about a lot of late is the increase in mobile phone production in India. The narrative underlying the success is that through a prudent mix of protectionism and industrial policy instruments, India has been able to reduce its mobile phone dependence on other countries, particularly China. This deemed policy success is now being seen as the playbook for many other manufacturing sectors such as electric vehicles and pharmaceuticals. For instance, see this excerpt from Nilesh Shah and Pankaj Tibrewal’s article titled The mobile phone sector has lessons for India’s economy:“We were one of the largest consumers of mobile phones in 2014. In 2014-15, our mobile phone imports exceeded $8 billion. Our electronics imports were threatening to exceed our oil imports. The government took many steps like 100 per cent automatic FDI, levy of import duties to protect local manufacturers, the Phased Manufacturing Plan (PMP), manufacturing clusters (EMC 2.0) and the Production Linked Incentive (PLI) scheme. Despite some execution challenges on the ground, these steps have developed our mobile phone manufacturing base. They have attracted investments, created lakhs of jobs, and have moved us from being a net importer to a net exporter.Our mobile phone manufacturing value has jumped more than eight times from Rs 0.27 trillion in 2013-14 to Rs 2.2 trillion in 2020-21. Samsung runs the world’s single-largest location mobile handset manufacturing plant in Uttar Pradesh. We have surpassed the US and South Korea to become the second-largest manufacturer globally.” [Indian Express, Jan 20] Impressive, isn’t it? By now, you already know there’s going to be a “but” somewhere. So here it is.Judging a policy based only on the benefits it brings is possibly the most common mistake in policy discussions. To understand the complete picture, we also need to analyse the costs.What about the Costs?Of the policy instruments used, allowing 100 per cent FDI through the automatic route is an unequivocally positive step. And we have dealt at length with the promise and perils of the mushrooming PLI schemes in editions 86, 118, and 153.In this edition, we will limit the discussion to the third instrument in the armour: increasing import tariffs. The modus operandi seems to be somewhat like this. Through the Phased Manufacturing Program (PMP), the government increases import duties on final consumer products such as mobiles, chargers etc. This leads to import substitution because products assembled in India (even with imported parts) start to become cost-comparable to the duty-levied imports. Every year, the government keeps adding new products to this PMP list, with the objective of increasing the number of final goods that are assembled in India. The final aim and hope is that these assembly units will become the nuclei for a complete manufacturing ecosystem over time. No, the costs of this strategy are being borne by two sets of Indians. The first losers are all consumers. Higher import duties mean that mobile phone prices have been increasing. The absolute increase isn’t alarming at first sight, to be frank. But electronics prices commonly fall sharply with improving technology, and that has certainly not happened for phones over the last five years. Vivek Kaul has explained the cascading effect of this price rise here:When an individual spends more on something, she cuts down on expenditure in some other area. Given this, if one business benefits due to protectionism, another business or other businesses, lose out in the process. It’s just that this is not so obvious in the first place and hence, is the unseen effect of protectionism.Second, the Indian manufacturers themselves have been under the pump because of rising tariffs for mobile phone parts. The lure of protectionism is such that it quickly spreads from final products to intermediate inputs. Soon, it was felt that not just mobile phone makers but domestic manufacturers of camera modules and connectors should also be ‘protected’. The result — not surprisingly — the import duties are now negating all the benefits provided under the PLI schemes. Manufacturers are still unable to compete in export markets because the parts they import have become costlier. A recent comparative study analysing import tariff regimes of India, Thailand, Vietnam, China, and Mexico puts this well.The main difference in their policy approach is the tariff policy of India compared to others. India has relied heavily on higher tariffs whereas other countries have not done so. Higher tariffs orient the approach of investors and domestic producers away from global markets and towards the domestic market. Notably the exports for India compared with others have remained low as has been examined in this report.This is a crucial point. While the various incentives and protectionism has been successful to the extent that imports of phones have reduced, we are still far away from becoming a competitive exporter. Have a look at this chart I made from government data on mobile exports.As you can see, India’s mobile phone exports fell sharply from FY15 to FY18 with increasing tariffs. Though exports in absolute terms have picked up in the last three years, mobile phones as a share of India’s total exports is still below what was achieved way back in FY09! Going ahead, India’s domestic market alone (projected to be 8.8% of the global market in FY26) is insufficient to attract more manufacturing here. The ability to competitively export will be a key determinant of policy success going ahead. And for exports to rise, imports tariffs must be brought down.In sum, before copying the mobile phone policy success playbook in other sectors, we must remember that the burden of protectionist policies is borne by the consumers and eventually the manufacturers, both. Protectionism can play spoilsport in India’s hopes of exporting its electric vehicles and mobile phones to the world.HomeWorkReading and listening recommendations on public policy matters[Podcast] An insightful episode of All Things Policy with MR Sharan on his new book Last Among Equals: Power, Caste & Politics in Bihar’s Villages[Report] An excellent comparative study on tariffs in electronics by ICEA. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit publicpolicy.substack.com
Where are the opportunities for the Indian investor in today's market scenario, and how should they position themselves to make the most of the current cycle? What are the risks that they should be aware of? Join us in conversation with Nilesh Shah, MD, Kotak Mahindra AMC as he shares his views on the India story.Speakers:Nilesh ShahManaging Director, Kotak Mahindra AMC LtdVinay JosephChief Investment Strategist, Standard Chartered Bank, India
It has been a topsy-turvy week for the global equity markets, having to deal with the Evergrande crisis in China. Will this event prove to be a catalyst triggering a market correction? Or is the worst over? In this exclusive interview with Puneet Wadhwa, Kotak Mahindra AMC Managing Director Nilesh Shah answers all these questions. Edited excerpts: Concerns around China's Evergrande crisis over now? Evergrande more of a China problem than a global one It's China's ‘Lehman Brothers moment' No global markets contagion, only a temporary setback Some impact: Real estate slowdown, metal stocks to be hit Will Evergrande ghost haunt global financial markets again? Difficult to predict market sentiment Events like Evergrande can act as a catalyst for market correction Where will Nifty be after 6 months – 15,000 or 20,000? Indian markets are fairly valued Corporate results good, Covid cases dropping, ample money flowing Evergrande crisis may force investors to look at India as alternative to China Biggest risk to markets: surplus liquidity, inflation or retail investor frenzy? None of these are risks People sceptical about markets, but still want to invest Indian market's fundamentals should be a worry We have a good opportunity to narrow economic gap with China If PLI scheme delivers, we may well become manufacturer to the world Investors looking for growth will then come to India What about the opportunity the US-China trade war gave? China is competitive; exporting more now than before pandemic India needs to leverage its strengths sector by sector US Fed has indicated a taper. Can global equity markets also take a breather? Excessive liquidity has created excessive valuation in asset classes like cryptos No such excess in the listed company/stock universe First impact of liquidity taper will be on NFT market, cryptos, unlisted equities The listed/stock market universe will be last to be impacted Should investors look at debt segment instead of equities? Debt was an option in March 2020 as well Investors must follow asset allocation What should be proportion for allocation to each asset class? Depends on life goals and risk profile Investment opportunities in the current market? Looking at an equal allocation between large, mid-and small-caps Some themes that will run long – Financialisation of savings: Beneficial for banks, NBFCs, AMCs, insurers, fintechs Export-oriented plays: Pharma, IT Industrial & engineering: Capex-driven play for the next 3-5 years
I speak with Dr. Nilesh Shah, the former Global R&D Director at Dow Chemical about sustainability and circular economy. (0:00) Nilesh Shah's biography (1:02) Defining sustainability and circular economy (3:20) The impact of chemical products on greenhouse gas reductions (7:00) Incongruity between plastics' net positive impact on the world and the media's portrayal of plastics (12:08) Responsibility of various players in the plastics ecosystem (15:45) Achieving circular economy via incremental and breakthrough solutions (18:16) Examples of short term incremental solutions (20:53) Economic viability of short term solutions (22:29) Role of legislation and regulation in sustainability efforts (25:12) Process of removing harmful chemicals off the market (27:54) When regulatory bodies tend to step in (30:05) What it takes for sustainable alternatives to be adopted (31:08) Importance of systems thinking in achieving sustainability
It seems like another lifetime. Yet it was just 30 years ago that India's economic liberalization process began. Nilesh Shah, chief executive officer, Kotak Mahindra mutual fund remembers those days like as if they were yesterday. Shah had just about got his chartered accountancy qualification. He has passed out with a gold medal and got his first job with ICICI Ltd. Here, he worked in the merchant banking division where he helped companies raise money through capital markets. “It was a rough time for India. The governments were unstable, Rajiv Gandhi, the prime ministerial candidate was assassinated, an emergency bailout loan was sought from the International Monetary Fund by pledging gold,” says Shah. He says that in those days he used to go with his seniors to companies who aspired to raise money from the capital markets, that were highly controlled and less regulated at the time. The old-age traditional businesses, Shah remembers, were skeptical. They used to say that import duties were brought down, imports would become cheaper and Indian businesses would die. “But the new age businesses had started to celebrate and used to say that we were ready to conquer the world,” he recollects. Shah says that a lot of things have changed since then. The capital market regulator, Securities and Exchange Board of India (SEBI) was born in the 1990s that brought order in a highly unregulated and “wild, wild west stock market.” What about mutual funds? Shah tells us stories of how up until the mid 1990s, the Indian mutual funds industry was dominated by the public-sector fund houses. Some of them used to give assured returns; a practice that SEBI later banned knowing the unsustainability of it. Shah takes us through how fund houses themselves reformed and strengthened their processes. Investors, he says, have also matured. Shah says that as information began to become more easily accessible and available, thanks to internet technology and transparency brought about by SEBI and the stock exchanges, investors also started reading up more about companies. It's a whole new world out there, says Shah, who has also grown throughout these past 30 year period. Listen up to this exciting podcast!
In this episode of The Lead from DH Radio, Member of Prime Minister's Economic Advisory Committee and MD of Kotak Mahindra Asset Management co., Nilesh Shah tells us all about the market and more. Download the Deccan Herald app for Android devices here: https://bit.ly/2UgttIO Download the Deccan Herald app for iOS devices here: https://apple.co/30eOFD6 For latest news and updates, log on to www.deccanherald.com Check out our e-paper www.deccanheraldepaper.com To read news on the go, sign up to our Telegram channel t.me/deccanheraldnews
if you have been tracking Mutual Funds, you would have certainly stumbled upon the name - Nilesh Shah. He is the MD of Kotak-AMC and part of the PM Economic Advisory Council This week he shared his interesting Career Journey in this video- various facets of his personal life such as being so humble in his demeanour, losing his father in early childhood, the support he received from neighbours, transitioning from a Gujarati Medium schooling background to being one of the most prolific speakers on the Indian markets After a Gold Medal in CA Exams, he was about to join L&T and was advised by the interviewer not to settle for stability so early in life. He was asked to rather try his fortunes in the financial markets - thus landing in ICICI as a Merchant Banker, transition to Stock Markets and now managing an AUM of 100,000+ crores. He talks about the role of serendipity, patience and constant learning. His vision for his life on Maslow's Hierarchy, now that he has pretty much achieved it all in terms of money and fame. Whats his mantra for unwinding. His advise to youngsters You cant afford to miss this Questions 1. My first question is that despite all that you have achieved in life, how is it that you maintain such a calm exterior, such careful choice of words, it's almost magical. I have spent hours watching your videos and get mesmerised each time. 2. You lost your father at a very young age. How did it impact you as an individual –Please share memorable aspects of your school life? 3. From Gujarati medium to being one of the most prolific speakers on the Indian markets, saw your TEDx talk as well. Normally a lot of youngsters find the transition to English from their native language tough. How did you manage the transformation? 4. What triggered the CA and CMA decision? How was your journey to the gold medal – expected or unexpected? You had said earlier that you've studied extensively in a library. 5. You had also shared that you had, as a fresher, being interviewed by L&T, inspired by the interview to try your hand at equities – early 90s. Please tell us more. 6. And you're the only one person in your family who chose service- what was the underlying thought process? 7. Amidst Franklin, ICICI, Axis and now Kotak, it has been nearly 3 decades. Any interesting moment- good/bad bosses, heaven sent opportunities to learn etc that you would like to share. 8. A fund manager's job- one feels it's quite glamorous. But I also sense that the bid to generate alpha might often turn out to be extremely demanding. Isn't it? How do you manage the stakeholder's expectations? 9. When bets go wrong- be it equity or debts, what do you tell yourself? 10. In your TEDx talk, you emphasised a lot on being proud of ourselves, our Indian raw mentality and we being a nation where Australia, Philippines & sub Sahara exists- what's your vision for our country & its youth? The comparison with China that you often make also comes pertinent here. 11. You've pretty much achieved it all. So sir, what's next on Maslow's hierarchy – your long term goals for yourself? 12. Sir, what do you do to unwind apart from family (wife + 2 daughters) – Gujarati literature – you gave up listening to music due to hectic work hours. 13. What career advice do you give to your daughters? How old are they? Do you want them to be CAs? Or do they have different aspirations? 14. Message to youngsters watching the show?
" We need out of box thinking, unconventional solutions & medical solutions to revive our economy. The Net cost as per my calculations, with some assumptions, lead to a cost of monthly lock down of $ 60bn. A balanced fiscal & monetary policy, monetization on fiscal deficit and increase in gold deposits as collateral against bank loans is pertinent" says, Nilesh Shah, MD & CEO Kotak Mahindra AMC - on Indiapodcasts with anku Goyal" Some Redemption in Mutual Funds Portfolio is seen, but is much within the expectation level"
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