0

0

0

0

0

0

0

0

0

economy | IST

Indian economy not in big crisis, will definitely recover, says Raamdeo Agrawal of MOFSL

Mini

CNBC-TV18’s Latha Venkatesh spoke with Raamdeo Agrawal and Ramesh Damani at the 24th Motilal Oswal Wealth Creation Study event on how they view the Indian market valuations and their key themes to bet on in 2020. Here are the key highlights from this conversation.

The Indian economy is not in a big crisis and will recover within 6-8 months, said Raamdeo Agrawal, Chairman, Motilal Oswal Financial Services.
Speaking with CNBC-TV18’s Latha Venkatesh at the 24th Motilal Oswal Wealth Creation Study event, Agrawal said,  “Economy will definitely recover. I am of the firm view that it is not the first time that we are down 4.5 percent and we are not in big crisis.”
“However, in the next 4-5 years as the momentum picks up of the economy, consumers come back, confidence comes back in the economy," Agarwal added.
He noted that the telecom sector has been a disastrous story for the last 15 years. From 3 players, it went to 17 players and now it’s back to 3 players, Agarwal added.
He stated that there will be a massive opportunity to make money in the country of billion plus people.
"Right now we are passing through a lot of flux, lot of cost issues, lot of losses and intense rivalry or competition among the incumbents. Therefore, once it is passed in next one year or so, in next 5 years the operators will make money, consumers will pay through their nose and government will also make a lot of money,” added Agrawal.
Further, on market valuations he said that through the global exchange traded funds (ETFs), the emerging market (EM) allocations in equity are supporting Indian valuations.
Ramesh Damani, Member, BSE, said that Indian markets cannot be defined by only 30 companies.
“I believe you cannot keep supporting these multiples on 30 stocks and keep buying them, it will end badly. I don’t think India can be defined by 30 companies,” Damani said.
Damani advised that good companies should not be thrown out of portfolios.
"There are some cos with decent profits, good balancesheets, handsome yields. I would still buy good companies if business is viable for 5-10 years," Damani added.