Agrawal slammed the market’s current valuation on Tuesday, saying the India‑based exchange will likely end the year at a trailing‑earnings ratio of 18‑times, a figure he describes as a "bottom scrape."—He added that this level would create a surprise upside if the price climbs beyond it.
The 18‑times figure sits below the sector average of 21‑times seen in the last quarter, indicating a relative cheapness for equity investors. Agrawal noted that aggregate corporate earnings in India are up 25% YoY, a robust figure that bolsters the broader market despite a lack of fresh foreign inflows.
However, geopolitical tensions and a volatile rupee are keeping overseas capital cautious. He said that any relief on FPI taxation would help, but the real catalyst for foreign inflows would be clearer currency policy and geopolitical certainty.
Inside Motilal Oswal, Agrawal remains bullish on the second half of the financial year. He highlighted a strong deal pipeline across asset management, wealth management and investment banking, and said the firm expects continued momentum in FY24‑25.
Looking ahead, the firm will monitor earnings releases and global macro‑trends, with a view to adjusting its asset‑allocation strategy accordingly.