Why Raamdeo Agrawal is unfazed by market correction
Raamdeo Agrawal, Joint MD, Motilal Oswal Financial Services also talked about the changing savings patterns in the country.
Raamdeo Agrawal, Joint MD, Motilal Oswal Financial Services drew an analogy between market corrections and Yoga technique "anulom vilom" in an interaction with CNBC-TV18.
“Every stock, every sector has to breathe up and then after a big rally, you have to have a good correction. Correction is an extremely necessary, essential part of the stock market movement.”
He pointed out that such corrections are quotational losses and investors should remember that this is the precise reason why equity is called a risk asset.
He also discussed the steep rise in retail participation in the market pointing to the shift in savings patterns in the country.
In financial year 2024, he observed, total fixed deposits in the country were at ₹17 lakh crore. The stock market must have received around ₹5 lakh crore at the same time.
“We are getting 4-5 million customers every month. From 35-40 million in 2020, last month we have reached 150 million customers and I think we are headed to 300 million customers,” he said.
Agrawal is also not worried about the rise in promoter selling or the block trades.
He believes it's a deeper market now and the recent correction has only made it healthier.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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