As the markets see recovery and hit two-month high on Monday, Raamdeo Agrawal, chairman and co-founder of Motilal Oswal Financial Services Ltd., says that the worst is over for the markets, and that "happy days are back".
After a recent market correction, Agrawal is optimistic that the market is finally stabilising and ready for a period of recovery and growth.
The markets have seen a decline since they hit a high in September 2024. While Nifty is down 9.89% since September, Sensex saw a 9.10% decline. Nifty fell 6.82% in the first two months of this year, while Sensex fell 6.76%. However, so far in March, both Nifty and Sensex have risen nearly 7%.
"Bulk of the correction is done," Agarwal told NDTV Profit. His outlook for the Indian market is optimistic, as he believes the worst of the market correction is behind us. With increased foreign interest, and a revival in IPO and QIP activities, the market is poised for recovery, he added.
While uncertainties remain on the global stage, the resilience shown by Indian markets provides a solid foundation for future growth, according to the chairman.
From a fundamental standpoint, Agrawal sees no major crisis in earnings. While earnings growth has been slower than expected, it remains stable. "We expected earnings to grow at 12-15%, but they turned out to be 5-6%. However, the earnings themselves remain solid," Agrawal noted. The key challenge, in his view, is not the stability of earnings but the market's valuation multiple.
Despite the recovery seen in the markets this week, the stocks are still significantly lower from their September peaks. This gives investors an opportunity to buy, according to Gautam Duggad, head of research for institutional equities at Motilal Oswal Financial Services Ltd.
In the broader markets, mid-cap and small-cap indices saw a correction of 30-40%, he said. "Investors with a long-term horizon can think and do their homework without worrying that if they don't buy today, they'll have to buy at a higher rate around two weeks down the line," the market veteran added.
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