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Indian equity valuations weighed as FPIs pull back, Motilal Oswal says
Motilal Oswal Financial Services chairman Raamdeo Agrawal cited strong auto and manufacturing volumes and said India is still doing well, though geopolitics and oil leave FX conditions “a little dicey.”
Motilal Oswal Financial Services chairman Raamdeo Agrawal said India’s equity market has lost a number of foreign portfolio investors over the past two years, with valuations affected by the withdrawal.
Speaking to ANI, Agrawal pointed to several factors behind the outflows, including domestic valuations, other markets performing better, and what he described as the AI story not happening in India.
He also highlighted potential growth drivers in corporate sectors, saying auto and manufacturing are likely to lead, and cited July production volumes rising 20% to 50% at major producers.
On the macro backdrop, Agrawal said June GST collection rose 15.5% despite rate slab cuts from 28% to 18%, adding that credit flow is about 18% and the domestic economy is improving, while warning that the war in the Middle East could impact markets and that forex conditions remain sensitive to oil prices and geopolitics.