'Value reset is behind us'

Neelesh Surana, a seasoned fund manager with a strong long-term track record, explains his optimism for new-age companies, and more

Neelesh Surana’s stock has rapidly risen alongside Mirae Asset’s over the last decade or so. Known for managing funds that have consistently outperformed their peers, Mirae Asset AMC’s chief investment officer has played an instrumental role in putting the fund house to the fore in a highly-competitive, elbows-out industry. A few days back, he agreed to speak with us to discuss the India growth story’s medium-term prospects, which sectors have caught his eye and his take on new-age companies. Here’s an edited transcript of the interview.

You recently spoke about interest rates stabilising in India. But oil producers’ decision to cut oil production has renewed inflation concerns. Can flaring inflation stall the growth story in the near to medium term?

Despite the many external factors at play, we expect rates to stabilise, given the country’s current favourable real interest rates compared to other markets, a comfortable current account situation, and the worst of inflation likely behind us.

What are the three key drivers and risks to India’s equity growth story in the next 3-5 years?

Once the ongoing chaos related to reset of interest rates to higher rate regime is settled, investors will hunt for growth. India’s longer-term growth is superior, both in absolute terms and relative to other economies. Additionally, we have two new growth areas in terms of manufacturing exports and services exports.