At the CNBC-TV18 Global Leadership Summit, Raamdeo Agrawal, Chairman and Co-founder of Motilal Oswal Financial Services, expressed confidence in the resilience of India’s markets and future potential for the Nifty index. Despite the current slowdown in earnings growth, Agrawal emphasized that this downturn is only temporary, and he expects a revival within the next six months, especially if fiscal or monetary support measures are implemented.
“Earnings are slowing down, so there is a clear challenge for the earnings to come back,” Agrawal said. “Maybe it would take six months, but they will come. We need fiscal or monetary help. And it will come. Have patience and wait.”
Foreign Institutional Investors (FIIs) Shift Gears but May Return to Indian Markets
Agrawal pointed to a shift in FII (foreign institutional investors) flows, with recent outflows from the Indian markets as investors look toward other attractive markets like the U.S. and China. Factors such as the recent U.S. election results, Donald Trump’s positive stance on cryptocurrencies, and earnings in India not meeting high valuations have drawn FIIs away from India over the past six to seven weeks.
However, Agrawal underscored the possibility of a strong rebound when FIIs return, suggesting that the Nifty could reach the 30,000 mark by the time they come back. “Foreigners are getting out today. But when they come back to buy, they won’t get the same prices. Maybe when they come back, the Nifty index will be 30,000,” he said, stressing the importance of patience in the current market scenario.
Investing in India’s Future: Opportunities in Digital and Financial Sectors
The panel discussion, titled “Investing in India’s Today & Tomorrow,” featured insights from other market experts, including Ramesh Damani, Manish Chokhani, and Ashishkumar Chauhan. Each panelist highlighted different growth sectors poised to benefit from India’s evolving economic landscape:
- Ramesh Damani emphasized the critical role of infrastructure in India’s growth, pointing to opportunities in digital public infrastructure.
- Raamdeo Agrawal highlighted digital technology as a “non-linear opportunity,” suggesting it could drive exponential growth across various sectors.
- Manish Chokhani advised investors to increase their holdings in the financial sector, noting its potential for sustained returns.
- Ashishkumar Chauhan directed attention to industries with strong capital investment, including technology and biotech, as key growth areas.
The discussion reinforced the panelists’ shared sentiment that while near-term challenges exist, India’s markets and key industries are well-positioned for future growth.
