Veteran Investor Raamdeo Agrawal Predicts 15% Annual Returns from the Indian Stock Market
_922851361.jpg)
Renowned veteran investor and Motilal Oswal Financial Services Chairman, Raamdeo Agrawal, has shared an optimistic outlook for the Indian stock market, projecting consistent annual returns of around 15 percent over the next five years. Backed by robust macroeconomic growth and expanding corporate earnings, Agrawal believes that disciplined equity investing will successfully double investors' portfolios within this timeframe.
Robust Economic Growth and Corporate Earnings
In a detailed market assessment, Agrawal noted that India's economy is poised to expand at an impressive pace of 7.5 to 8.5 percent. Simultaneously, corporate profits are projected to rise by 13 to 14 percent, which will naturally translate into healthy index gains ranging between 12 and 14 percent annually.
With the Nifty currently trading at comfortable valuation multiples, Agrawal pointed out that steady earnings growth can absorb market rallies while naturally compressing price-to-earnings ratios. Despite a potential range-bound phase in the near term, he emphasized that the market holds strong underlying potential for substantial upside growth.
FII Selling Pressure Moderates as Global Capital Shifts
Addressing the stance of Foreign Institutional Investors (FIIs), Agrawal explained that recent hesitation among global funds was largely driven by attractive competing opportunities in the US market and technology-heavy Asian economies like Taiwan and South Korea. However, he highlighted a major positive shift: foreign investors have largely adopted a "stop selling" posture in India.
With foreign institutional outflow stabilizing, the domestic market has found a reliable cushion, reducing downside risks from current levels while continuing to benefit from massive domestic liquidity inflows.
Addressing Capital Gains Tax and Currency Concerns
While remaining bullish on long-term prospects, Agrawal offered candid feedback on regulatory and tax frameworks, identifying capital gains tax structures and currency devaluation as key friction points for foreign investors. He pointed out that because capital gains are calculated in rupees while foreign investments are valued in dollars, currency depreciation can sometimes leave international investors paying taxes despite negligible dollar-denominated gains.
He suggested that maintaining a competitive and investor-friendly tax environment compared to other emerging markets is vital for fostering enduring long-term partnerships with global capital allocators.
_922851361_351x234.jpg)
_352888046_351x234.jpg)
_171516650_351x234.jpg)
_1406454495_351x234.jpg)
