'People want money in 30 mins': Raamdeo Agrawal on lack of patience among retail investors

Market veteran Raamdeo Agrawal believes the domestic market is reasonably-priced and broadly distributed. He feels stocks are neither depressed nor there is any exuberance in the market, at present, similar to the ones seen in 2000 and 1992. In an exclusive interview to BT TV, Agrawal said he sees India to be a $9-10 trillion stock market in a span of 10 years. Investors need patience, the Chairman at Motilal Oswal Financial Services (MOFSL) said, which is missing.   

"Look at options volumes, look at futures volumes,  people don't want to make money tomorrow; they want to make money in the next half-an-hour. I don't come from that school," Agrawal, who recently announced giving away 5 per cent of his MOFSL stake for charitable purposes, said.  

The market veteran said TCS, Wipro and Infosys were small companies in 2000 but are giants now. One has to give time not only to the company to grow but also to the market itself, he said.

Agrawal said the $3 trillion Indian stock market should be around $9-10 trillion mark over the next 10 years. "Do we have the patience? The market is all about the patience," Agrawal said while advising investors to stay put.

Agrawal said the domestic stock market may deliver 12-15 per cent return in the long-term, if the corporate earnings keep on growing at the ongoing pace. He said the market is erratic and no one can predict short-term movements, suggesting the futility of such an exercise.

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If one looks at a 40-year chart, one may think that the stock market has not seen any correction. This is even as, Agrawal pointed out, the market has seen many 40-50 percentage points corrections from highs during the last four decade period.

"One has to be very careful with the market. Nobody knows the market truly. But my experience tells me that if the corporate earnings are growing at 15 per cent, there is no reason why eventually we should not be making 15-17 per cent return in the market," Agrawal told BT TV's Managing Director Siddharth Zarabi.

Agrawal, who is hopeful about corporate earnings over the next 12 months, said the market delivered 13-14 per cent return annually over the last 35-40 years and that the future is even brighter. Even if one does not assume optimistic estimates and consider the earnings growth in the next 40 years to be similar to the last 40 years, Agrawal said 12-15 per cent returns annually are possible in the long-term.

The Chairman of MOFSL said the market can move 10-15 per cent without any specific reason in the short term. Agrawal, who stays fully-bought, said he is fully prepared for any market correction ahead.

"That's the price you pay for 14-15 per cent," he said adding that the market is poised to do well going ahead.

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