Shankar Sharma

In a recent post, Shankar Sharma voiced strong opposition to a Pakistan-led peace initiative, linking it to national sentiment and identity rather than economic factors.

Shankar Sharma said that he sees exceptional opportunity and value in small-cap stocks, adding that the segment could outperform larger companies in the coming period.

Despite the Sensex and Nifty 50 nearing record highs, Shankar Sharma cautions that India remains in a relative bear market compared to global peers, with many stocks down significantly.

Ace investor Shankar Sharma believes that the Indian stock market may deliver moderate returns in the medium term. With a lack of fresh triggers and macroeconomic concerns, Sharma emphasises the need for cautious expectations despite a promising long-term outlook.

In a candid conversation with Mint, the veteran investor explains why weak tax growth, rupee pressure and fiscal constraints limit the odds of a broader revival—and why global equities and China still look more attractive.

Shankar Sharma in a recent post on X said that this bull market will go down in Indian history as the biggest cash transfer from the poor to the rich.

Ace investor Shankar Sharma says the US stock markets have lagged global stock markets when returns are measured in euro terms. He says one should never have zero investments in the US markets, but in terms of allocation, there are plenty of other markets that merit higher investments than America.

For Sharma, the problem isn’t taxation — it’s growth. “The market is not negative because of taxes. It is negative because of poor growth. Whatever growth we are getting has been a function of high government Capex. In reasonable part, the money for that is coming from the stock market taxes.”

Shankar Sharma said that data centres are a capex-guzzling business (like an industrial warehouse), and once you have capex in the ground, you are at the mercy of the various customers.

Shankar Sharma noted that while he has never owned a single bank or NBFC stock — with the lone exception of HDFC Bank — he explained what makes them attractive at certain points in the economic cycle.