Indian equities to not fall sharply tracking drag in global markets, says Raamdeo Agrawal

In an exclusive interview with Zee Business, Raamdeo Agrawal, veteran investor and Chairman of Motilal Oswal Financial Services said amid continuous gains on the D-Street held that Indian equities are unlikely to see sharp meltdown tracking fall in the global markets. Furthermore, he maintained that despite correction in global markets, Indian markets more or less remained steady.

His view comes at a time when Indian equities confront correction after continuous gains of fourteen straight days. At the last count, the bluechip Nifty index was down 0.42 per cent or 105 points at 25,174.2, while it scaled its all-tme high of 22,333.65 on September 2.

The veteran investor said that shares trading at decent valuation will reward investors with healthy returns in the long term. Also, he said that the D-Street is buoyant as it sees constant influx of funds on the back of entry of new retail investors.

Global markets

Global markets have corrected today sharply after the US recession concerns again surface after the latest data points there. Nikkei, too, saw  sharp gains transpiring from the biggest one-day fal in Nvidia shares.

Agrawal opines markets to unlikely see recession similar to 2007

The investor also pointed that global markets are unlikely to see Lehman Brothers-led recessionary crisis similar to 2007. And the problem may only deepen in case of sharp sell-off by the foreign investors.

Notably as sentiment for rate cut strengthened at first, FIIs have turned positive on Indian equities with FIIs pouring in funds for straight two sessions now in September.

What can investors do?

Agrawal suggested investors to mitigate risk by applying portfolio diversification. Also, through SIPs in mutual funds investors may reap healthy return in the long term. Furthermore, for reaping reasonable returns, investors need to stay put in the market for a considerable time without any fear element.