Domestic valuation, AI, geopolitics reasons for FPIs pulling out, says Motilal Oswal Financial Services' Raamdeo Agrawal | Stock Market News
Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services feels that the Indian equity market has lost a number of foreign portfolio investors (FPIs) over the past two years for various reasons.
Speaking to news agency ANI today, Agrawal said Indian equity valuations have been impacted by withdrawal of FPIs, adding “it was because of many reasons — domestic valuation, other markets doing very well, artificial intelligence (AI) story not happening in India”.
He further noted, "Geopolitical situation has put pressure on India's forex situation because of high oil prices… we are seeing a reversal of trend where FPIs are actually looking at India more favourably...”
When asked about the growth drivers for Indian corporate sectors, Agrawal felt that auto and manufacturing would be the leading sectors.
“On the manufacturing side, automotive will be one of the big sectors. Even today, the numbers which are coming for July; the volumes are up anywhere between 20% to 50% by the major producers...”
He added, “(The) June goods and services tax (GST) collection is up 15.5% despite the cut of rate slabs from 28 to 18%. I think the domestic economy is booming. There's a good pickup in the economy and the credit flow is about 18% or so.”
According to Agrawal, India is “doing very well”, but the war in the middle east could have significant impact. “We are doing very well, except that the forex situation is a little dicey because of oil prices and whatever is happening geopolitically… we have to see that the geopolitical situation doesn't go out of hand,” he stated.
Notably, LiveMint data research has found that the Indian stock market has largely been resilient despite oil price volatility due to the war between the United States and Iran, and amid concerns over possible monetary tightening.
Overall uptrend in the Indian market over the last two months can be attributed to a decline in crude oil prices, better-than-expected Q1 results announcements, and easing AI-trade. The data showed:
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>
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