Corporate earnings could revive in the fourth quarter of this financial year, said Raamdeo Agrawal, chairman, Motilal Oswal Financial Services, in an interview with Nishanth Vasudevan ahead of the release of the firm’s wealth study. Edited excerpts:
What is your evaluation of the market at this juncture?
Initially, I was a little worried about what foreigners would do given the lower earnings growth. They have sold about ₹1.5 lakh crore but the Nifty has fallen only about 1,200 points. And now they are also tired of selling. What is happening now is that the US is trading at the same valuations as India. It may be a little higher. This means that now there is a new benchmark for the valuation of the countries. I would not like to compare India with China because we are a growth country. So, now we are not that badly priced globally.
And with so much liquidity in the global system, I think that we are fine, but you should always be ready for a 10% correction.
What should investors expect from the market in 2025?
The fact is that investors must be prepared for lower returns. In the US, it is possible that over the next 10 years, their return will be 4-5%. But the point is who wants to leave the party? Everybody w
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