In an exclusive interaction with SupportBiz, Rohit Gadia, CEO, CapitalVia Global Research, shared his insights into the market and his experience as an entrepreneur.
Edited excerpts from the interview:
What are the key trends influencing the capital market?
Technically, the market is bullish, and is expected to continue its rise. Spot Nifty is facing psychological resistance near 6000 levels. 5580 to 5800 is the range of accumulation for Spot Nifty, so even if Nifty corrects from here on, it should accumulate in between the aforesaid range. The market should hit an all-time high this year. 5540 is the important level on the downside, which has to be sustained and should not be broken. 2012 has seen the second highest investment ever done by FIIs after 2010, and sentiments still look bullish for Indian markets. More investment from FIIs could be expected in Indian markets as compared to world markets.
What are the key drivers and influencers of this market?
There are some important factors which are driving and influencing the market. IIP numbers for October 2012 stood at 8.2 percent. So far, in this fiscal year, IIP had shown positive growth only in May at 2.5 percent and in August at 2.3 percent. The October IIP numbers are very impressive and promising, indicating recovery.
Also, the most difficult and controversial bill - FDI in multi-brand retail - has got the Parliament's nod, thereby making the market optimistic for other less difficult reforms in line, like the Banking Amendment Bill, Pension Bill, and Insurance Bill.
The sentiments of investors are also changing, although the market has not seen a lot of domestic participation yet and sectors like realty, infrastructure and capital goods have not joined the rally yet. These sectors are currently facing problems, but they will, sooner or later, join the rally and may lead the markets in the upcoming fiscal year.
India has become an attractive investment destination. Despite its domestic concerns, the Indian capital market is considered better than other Asian and emerging markets.
CapitalVia is planning an aggressive expansion. What will be your key focus areas in the next 12 months?
Yes, we are looking to expand our business across India, as a lot of our customers have started demanding a local presence. Our main target is to open 13-15 branches in the next 12 months.
What are your plans for entering global markets?
We have been researching Singapore markets for more than two years now, and we have a good number of traders and investors from Singapore supporting us. We plan to expand aggressively in Singapore markets this year.
We are also studying US markets, and that could be our next target area for the next six months.
Several Indian SMEs are considering entering the open financial market. What would be your key recommendations for such SMEs?
There are great opportunities for such SMEs! They should come up with a vision, and should not do any compromises in their long-term planning or vision for short-term gains. The management of such firms should completely plan and build the organisation structure as per its vision, and also align the employees and ultimate customers with the vision. Also, it is very important for them to maintain and constantly improvise on the standard and quality of their services, which would enable them to compete with top companies and turn them into a larger enterprise.
How has your experience as an entrepreneur been so far?
It wasn’t sunshine all the way. I also faced a lot of challenges while setting up CapitalVia. I lost a lot of money while trading initially, my biggest mistake being leveraging almost 10 times on my savings. This made me realize that while my love for trading surely had the potential to become a career, a day trader’s life is no cakewalk.
CapitalVia was started in 2008, with just 5 people, from a small rented room in Indore. Initially, it was I who donned all hats, from office boy to CEO. However, within two months, we had already registered 40-50 customers.
For me, starting a company in a Tier-2 city turned out to be a blessing in disguise. Indore has cheap labor, lower rents and lower lifestyle expenses. People’s expectations are lower here as well.
What has been your turnover in the last couple of years? What expectations do you have from the next one year?
In the last three financial years, we have witnessed a growth rate of more than 100 percent. In 2009-10, we registered a turnover of Rs. 3.33 crore, with a growth rate of more than 150 percent as compared to the previous financial year. In 2011-12, we posted a turnover of around Rs. 13.77 crore, with a growth rate of 101 percent. We are expecting to reach a turnover of Rs. 22 crore by the end of financial year 2012-13.