Raamdeo Agrawal says avoid noise, buy right stock at right price
While growth has not yet picked up to 13–14 per cent, Agrawal expects the credit cycle to accelerate from hereon.
- Oct 13, 2025,
- Updated Oct 13, 2025 12:29 PM IST
Market veteran Raamdeo Agrawal is optimistic about the prospects of the domestic stock market going into Samvat 2082. Agrawal, who is Chairman and Co-founder of Motilal Oswal Financial Services Ltd, said one should not get too bothered by geopolitical noise, as it is beyond anyone’s prediction.
"Our control is over buying the right stocks at the right prices. That focus must not be lost. These are all passing phases. Until yesterday, both wars were ongoing. Today, at least one war is coming to a halt. Focus more on positives than negatives," Agrawal said in Business Today’s special Samvat 2082 interview.
Agrawal noted that the US President is trying to end the two wars, and after the Gaza conflict, attention may shift to the Russia-Ukraine war. He said oil prices are falling and the credit flow cycle has been unleashed. While growth has not yet picked up to 13–14 per cent, Agrawal expects the credit cycle to accelerate from hereon.
"If, by chance, the credit flow reaches 13–14 per cent, don’t worry about what is happening in the world. I think your economy is strong, your corporates are rocking, corporate earnings will grow, and there is ample liquidity waiting from domestic retail investors, which will keep valuations at the current elevated level of 22–23 times. Earnings will pick up, and that combination, I think, could give you a 12–15 per cent compounded return in the years to come," Agrawal said.
The interview was moderated by Siddharth Zarabi, Group Editor of Business Today, along with Aabha Bakaya, also from Business Today.
The downside risk for the market, Agrawal said, is earnings not materialising. He added that he would not be worried about anything else. "In aggregate, the impact of whatever the government does, whatever we do, or whatever the world does — I think earnings growth stalling or not growing as we desire will be the biggest risk. Over the last year, despite earnings rising by around 10 per cent, the market remained flat. So, we saw a period of correction and consolidation over the past year. Now, the stage is set for a major upward move in the markets, although it will start slowly. I would expect banks to lead the rally,” he said.
Agrawal noted that stock indices have been flat over the past 12 months, while the previous year had delivered 12–13 per cent returns.
Market veteran Raamdeo Agrawal is optimistic about the prospects of the domestic stock market going into Samvat 2082. Agrawal, who is Chairman and Co-founder of Motilal Oswal Financial Services Ltd, said one should not get too bothered by geopolitical noise, as it is beyond anyone’s prediction.
"Our control is over buying the right stocks at the right prices. That focus must not be lost. These are all passing phases. Until yesterday, both wars were ongoing. Today, at least one war is coming to a halt. Focus more on positives than negatives," Agrawal said in Business Today’s special Samvat 2082 interview.
Agrawal noted that the US President is trying to end the two wars, and after the Gaza conflict, attention may shift to the Russia-Ukraine war. He said oil prices are falling and the credit flow cycle has been unleashed. While growth has not yet picked up to 13–14 per cent, Agrawal expects the credit cycle to accelerate from hereon.
"If, by chance, the credit flow reaches 13–14 per cent, don’t worry about what is happening in the world. I think your economy is strong, your corporates are rocking, corporate earnings will grow, and there is ample liquidity waiting from domestic retail investors, which will keep valuations at the current elevated level of 22–23 times. Earnings will pick up, and that combination, I think, could give you a 12–15 per cent compounded return in the years to come," Agrawal said.
The interview was moderated by Siddharth Zarabi, Group Editor of Business Today, along with Aabha Bakaya, also from Business Today.
The downside risk for the market, Agrawal said, is earnings not materialising. He added that he would not be worried about anything else. "In aggregate, the impact of whatever the government does, whatever we do, or whatever the world does — I think earnings growth stalling or not growing as we desire will be the biggest risk. Over the last year, despite earnings rising by around 10 per cent, the market remained flat. So, we saw a period of correction and consolidation over the past year. Now, the stage is set for a major upward move in the markets, although it will start slowly. I would expect banks to lead the rally,” he said.
Agrawal noted that stock indices have been flat over the past 12 months, while the previous year had delivered 12–13 per cent returns.