As panic-stricken investors look for clues in the market swings amid a sliding rupee, higher crude prices and governance issues in corporate groups, Raamdeo Agrawal, Chairman, Motilal Oswal Asset Management Company (MOAMC), says the current correction provides a rare decadal opportunity for investors to buy into private banking and NBFCs. However, he has words of caution too. Edited excerpts from an interview with BusinessLine :
The current market slide has created panic among the investors. Does this correction worry you?
From the market point of view, it is not. Because this correction was overdue. There has been sustained domestic flow in the last four years, and the markets were refusing to go down. So, different kind of companies went up, and quite unreasonably in some cases. The domestic flow has not stopped but has significantly slowed down; so, the stocks that were supported by this flow saw correction. With the correction, they have found their natural levels at the current underlying value. In my view, this is a very healthy correction.
As panic-stricken investors look for clues in the market swings amid a sliding rupee, higher crude prices and governance issues in corporate groups, Raamdeo Agrawal, Chairman, Motilal Oswal Asset Management Company (MOAMC), says the current correction provides a rare decadal opportunity for investors to buy into private banking and NBFCs. However, he has words of caution too. Edited excerpts from an interview with BusinessLine :
The current market slide has created panic among the investors. Does this correction worry you?
From the market point of view, it is not. Because this correction was overdue. There has been sustained domestic flow in the last four years, and the markets were refusing to go down. So, different kind of companies went up, and quite unreasonably in some cases. The domestic flow has not stopped but has significantly slowed down; so, the stocks that were supported by this flow saw correction. With the correction, they have found their natural levels at the current underlying value. In my view, this is a very healthy correction.
