Raamdeo Agrawal discusses Ayodhya tourism boost, and whether banks can derail market rally

Speaking about the market and earnings outlook, Agrawal said there are some concerns on the banking sector where deposit growth, particularly accretion of low cost savings deposits, has slowed down. This, he said, is "because people are preferring coming to the capital markets and looking at stock market kind of options for an alternative deployment and that kind of reduces a mix of the deposits and raises the cost of the deposit. So, net interest margin (NIM) is under pressure."

However, he also noted that the loan demand is strong and banks can grow at 20% there. He is not worried that this will derail the market but it could slow down the earnings growth in the banking, financial services, and insurance (BFSI) space.

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Agrawal also pointed out that while demand for capital goods seems to be healthy, consumer demand is still relatively weak. However, he is hopeful that the government will announce some measures in the Budget to boost demand.

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