New Delhi: Motilal Oswal Financial Services co-founder and experienced investor Ramdev Aggarwal has made a big claim. He predicted that the Nifty index could reach 30,000 when foreign institutional investors (FIIs) return. Aggarwal on Thursday shared a positive outlook for the Indian stock market. In recent times, foreign investors have turned to China. It has announced a big stimulus package to revive its economy. Due to this, money has been rapidly flowing out of Indian markets and into Chinese markets. This is a major reason for the decline in local markets. But, his return is also considered certain.
Indian market is very reliable
At the CNBC-TV18 Global Leadership Summit, Ramdev Aggarwal highlighted India’s unique position as one of only two global markets in the world, along with the US. The Indian market gives reliable returns over time. Regarding recent FII outflows, Agarwal admitted that investors often diversify into other Asian markets like China and Korea.
However, Agarwal believes that India’s strong economic fundamentals and growth potential will attract FIIs back. According to Aggarwal, ‘Once they exit India, the re-entry will be very explosive. Maybe when they come back, the Nifty index will reach 30,000.
What is your advice to investors?
Aggarwal advised Indian investors to remain fully invested rather than attempting to time market cycles. Especially considering India’s high compounding capacity.
Drawing on his 45 years of market experience, the veteran investor stressed that investors who maintain a long-term perspective and weather market fluctuations in the short term stand to gain significantly. “Stay invested and let compounding work its magic,” he said.
Veteran investor Ramesh Damani also supported Agarwal’s view on compounding. Young investors were advised to maintain their investments.
According to the report, Damani encouraged investors to focus on long-term returns rather than short-term gains. He said, ‘The magic of compounding can lift a generation from poverty to wealth. Provided it is maintained consistently.
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How can retail investors effectively navigate short-term volatility in the Indian market during uncertain times?
Interview: The Future of the Indian Market - Insights from Ramdev Aggarwal
Time.news Editor: Good afternoon, Ramdev! Thank you for joining us today to discuss your recent predictions regarding the Nifty index and the overall health of the Indian stock market. It’s always a pleasure talking to an expert like you.
Ramdev Aggarwal: Thank you for having me! It’s a great opportunity to share my insights.
Editor: Let’s dive right in. You made a bold prediction that the Nifty index could reach 30,000 once foreign institutional investors (FIIs) return to the Indian market. Can you elaborate on that?
Aggarwal: Absolutely. The Indian stock market has always demonstrated resilience and potential for growth. We’re currently witnessing a significant shift where FIIs are investing more heavily in China, especially after the country’s recent stimulus package. However, I believe this is a temporary phase. Once global conditions stabilize, and investors seek reliable returns, they will likely turn their focus back to India.
Editor: You mentioned that foreign investors are currently favoring China. What do you think needs to happen for them to return to India?
Aggarwal: Good question! There are several factors at play here. First, India needs to maintain its economic growth trajectory. We have a robust foundation with strong consumer demand, an expanding middle class, and a government that is focused on reforms and infrastructure development. If we can show continued economic stability and growth, FIIs will naturally gravitate back.
Editor: You highlighted India as one of only two markets in the world, alongside the U.S., that provide reliable returns over time. What makes India stand out in this regard?
Aggarwal: India’s demographic advantages cannot be overstated. We have a young population, which fuels innovation and consumption. Moreover, our regulatory environment is improving. Initiatives like Make in India and the Digital India campaign are designed to boost investor confidence. Historically, the Indian market has shown an ability to recover quickly from downturns, making it a favorable long-term investment.
Editor: With the current outflow of foreign investment, some might feel concerned about the short-term performance of the stock market. How should retail investors navigate this situation?
Aggarwal: It’s natural to feel anxious during such periods. My advice to retail investors is to focus on long-term gains rather than short-term volatility. Market corrections can create great investment opportunities. Diversifying one’s portfolio and ensuring a mix of quality assets is crucial. It’s about staying informed and being prepared to act when the time is right.
Editor: Many investors are also curious about macroeconomic factors, such as inflation and interest rates. How do you see these influencing the market in the near future?
Aggarwal: Macroeconomic factors play a significant role. Right now, management of inflation and maintaining manageable interest rates is crucial. If inflation remains under control, we can expect central banks to keep rates stable, which would be good for markets. However, if inflation spikes, we could face tighter monetary policies, which can create volatility.
Editor: With your extensive experience in investments, what is your personal outlook for the Indian stock market over the next few years?
Aggarwal: I remain very optimistic. Given our economic fundamentals, demographic advantages, and the potential return of foreign investment, I expect the market to trend upwards. If the Nifty reaches 30,000, as I believe it could, it would reflect not just recovery but robust growth.
Editor: That’s certainly encouraging to hear. Before we wrap up, do you have any final thoughts for our readers, especially those looking to invest in the Indian market?
Aggarwal: Stay patient and remain informed. The Indian market has its ups and downs, but with a long-term perspective and strategic planning, investors can reap significant rewards. Adaptability and resilience are key.
Editor: Thank you, Ramdev, for your valuable insights and for taking the time to speak with us today. We look forward to hearing more from you as the market evolves.
Aggarwal: Thank you for having me! It was a pleasure discussing these important topics.