This one was there a long time back but it shows the vision of the man. He is one of the unsung heroes of the Indian bull run.

Charging bull     Business India (March 17 to 30, 2003)

Cricket has clearly overshadowed the recent Union budget. I therefore though it timely to interview the famous cricketer Navjot Singh Sidhu, who believes in calling a spade a bloody shovel, for his comments on the budget and on the state of our markets________

Q: What is your view on the reform progress in India?

A: Reforms in India are flowing like a river – simply unstoppable. They are running like an Indian taxi meter.

Q: What is your assessment of the latest Indian budget?

A: The Indian budget is laying the foundation for a strong economy and has maintained its thrust on reforms. I think that our finance minister has understood what I have been saying for years, ‘Great feathers make great birds’. The recent Indian budget was like chicken biryani with lots of chicken.

Q: Why is the market not reacting positively to all this?

A: These days, the markets are swinging like a rubber ball in a tidal wave. Good budget, decent valuations and low interest rates are countered by the current uncertainty in Iraq. But in the end you know that the stockmarket is like a wife – you never know which way she will turn.

Another problem with the Indian market is the complete absence of the domestic retail and institutional investors. Investors and fund manager are moving from stock to stock and sector to sector without any fresh money being invested. These investors have made our stocks like bicycles in a cycle stand – one falls down and then all of them go down.

Q: What is your message to all the investors who have lost so much money in the last few years?

A: I will tell the investors to have faith and to bear with the current bearishness. Do not give any honey to the bears by selling your stocks. These days a bear is looking more like a cheshire cat that’s had loads of cream. Some day very soon, the bulls are going to make mincemeat of the bears and eat them with tomato sauce. Bulls are going to crush the bears and they will need a hanky at that time.

Q: What are your favourite sectors in the current environment and particularly after considering the impact of the budget?

A: I like the banking sector at these levels. Low valuations, high (tax free) dividends and major reforms in the sector should provide for strong returns.

I continue to remain bullish on the Indian IT sector including the high growth BPO stocks. The Indian IT sector is globally competitive and increasing its share against all foreign competitors like an elephant trampling the paddy fields. The Indian BPO sector, on the other hand, is as innocent as a freshly laid egg, which will grow into a very fat hen one day.

Q: What is your view on cement stocks?

A: Although there is lot of consolidation in this sector, the Indian cement sector is like an Indian three-wheeler, which sucks a lot of diesel but cannot go beyond 30. Performance of these stocks is as erratic as electricity supply in an Indian summer.

Q: What is your view on the State owned units?

A: It looks that we were earlier traveling on the Indian roads and are now traveling on the German Autobahn. Well, may be not the German Autobahn but definitely not an Indian road either.

Q: What about debt investments at this stage?

A: With interest rates at historic lows, investors will slowly start shifting to equity as global uncertainty comes down post any action on Iraq. Debt investments are like an open soda bottle whose gas is over.

Q: What will you tell investors who have all their money invested in debt and zero in equity?

A: You know it’s very difficult to kill a man who is hell bent upon committing suicide. Any investors with such an extreme allocation to debt (versus equity) will look like a brooding hen over a china egg in the long term.

Q: Should investors invest directly or use mutual funds to make their investments?

A: I hope that investors know that all that comes from a cow is not milk. You need professional managers just like when you are dining with the demon you’ve got to have a long spoon.