Chokhani explained that global markets move in long cycles, driven by liquidity and changing asset preferences. “Every decade, excess money printing has led to bubbles,” he said, citing past periods when capital moved from US equities to Japan, commodities, emerging markets, and technology. “For now, the hard asset theme is here to stay, but pause,” he added, referring to recent sharp gains in gold and silver.
He described gold as “a fear trade” and equities as “a hope trade,” noting that the rally in precious metals is likely to stabilise after a strong run.
Also Read | Samir Arora sees the tide turning for Indian equities, lists four reasons why
Madhu Kela, however, maintained his preference for equities over gold. “You can tactically use gold and silver as an asset allocation call, but I don’t think someone like me can invest heavily in them for the long run,” he said. “There is nothing fundamental about these prices – no real usage that can justify them.”
Both investors discussed India’s rising domestic wealth, with Kela highlighting that “India has created nearly $7 trillion of incremental wealth in the last five years.” He noted that this surge – split between gold and the stock market – reflects a powerful wealth effect for the economy.
On the global front, both agreed that easing tensions between the US and India could help sentiment. “You couldn’t have better conditions for business to take risks,” Chokhani said, pointing to tax cuts, goods and services tax (GST) reductions, and regulatory support for credit.
Looking ahead, Kela said he remains focused on bottom-up stock selection, particularly in smaller companies. “Entrepreneurs from tier-three and tier-four cities are hungry,” he said. “There will be many winners from here.”
Both Chokhani and Kela identified AI as a transformative opportunity. “When you think of AI, you want organised data sets,” Chokhani said, noting that financial services could be major beneficiaries. “The biggest play of AI in India is our financial space.”
Also Read | UBS expects modest market returns, bets on consumption and defence themes
Kela added that the application layer of AI – including legal, data, and enterprise tools – is where “the real money will be made.” He also sees strong potential in data centres and energy as supporting infrastructure for AI growth.
On sectors, both pointed to financials and manufacturing as areas likely to benefit from structural trends. “This bull market, by no means, is over,” Chokhani said, adding that public sector banks and select metal companies could see strong earnings recovery.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
