Here is the message of Raamdeo Agrawal for markets participants in 2022

The marquee investor stays optimistic for the road ahead.

Chartered Accountant Raamdeo Agrawal has been one of the most revered marquee investors in India. The man who puts Warren Buffett in high regard, and calls him his ‘guru’, is also sometimes referred to as the ‘Warren Buffett of India’. This son of a farmer came from Raipur Chhattisgarh to Mumbai to complete his higher studies. This was the time when he made friends with his current business partner and close associate- Motilal Oswal. They had one common interest-stock market, which has kept them intact for so long after they co-founded Motilal Oswal Financial Services in 1987. He is working as the non-executive chairman of Motilal Oswal Services.

In the latest interview to Business Today, Raamdeo Agrawal gave his insights on the market outlook for 2022 and how should we see this year. The market guru feels that the markets would stay buoyant going ahead in the year as he is optimistic about the corporate earnings. Even though the turbulent times may linger for a while, the earnings are expected to provide a cushion in the next 12 to 15 months. He stressed upon the IT and financial sector supporting the markets. He does not encourage timing the market but believes in staying invested even in correction times.

Agrawal also mentioned the increased trading volumes on exchanges over investment. He hopes that the budget makes investing a bit economical considering the tax effects. When asked about the trending divestment decisions regarding LIC, the marquee investor feels the pace of the process has been slower. The divestment should happen soon enough since the markets are ready to embrace the same. Talking about the implications of the upcoming budget on portfolio allocation, he said that investors need to have high allocations towards equity and within equity stock selection should be the priority. He is also bullish in the real estate space. Instead of investing directly in real estate, one may prefer investing in real estate companies.

To put it in a nutshell, Raamdeo Agrawal has a message for all that even though the FIIs may withdraw funds going ahead and the rate hikes may be the issue, investors need to stay invested in the markets as the corporate earnings cycle is looking strong and the overall market sentiment looks affirmative.