Retail might far bigger than political triggers; Q3 & Q4 earnings to be better than in H1: Raamdeo Agrawal
Raamdeo Agrawal, Chairman & Co-Founder, Motilal Oswal Financial Services, says there are forces far bigger than the political circles playing into the market. The biggest force is the retail revolution, the inclusive development of the market where we are getting anywhere between 4-4.5 million customers. Last month, it was 4.35 million. The sustained flow of SIPs and even the block flows are providing a lot of resilience to the market and that is why this huge event of political upset has just gone by.
Agrawal further says the real thing to watch out for the next 12 months is the earnings profile and how exactly the industries do and what are the factors which are impacting. Quarterly results might show just about 5-6% growth. All cylinders should fire in the second half. Q3 and Q4 should be better than the first half of the earnings.
It has been a good Samvat here, whichever way you look at it.
Raamdeo Agrawal: You cannot ask for more, in the sense that the index itself has done about 25-26% and on top of it, everybody's portfolio has done 5-6% better.
I think the return has been more like 30% and we have a good base. So, to make on a base of thousands of crores, it is simply fabulous. We had not seen any deep corrections in the last one year.
Last Samvat has been a Samvat without corrections. Very recently, we have seen 5-7%, 10% kinds of cuts, which is very healthy and one can take this much without any problem. Now that the October heat is gone, we are coming closer to November and start of the winter is there for the market.
