Trade deal will happen, use market correction to buy, says Raamdeo Agrawal

Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, said ongoing trade negotiations between the two major economies will eventually lead to an agreement, though the terms and timing remain uncertain. “There are two big countries, and it is impossible that this will not happen. Deal will happen on what terms, when – that is uncertain,” he said.Also Read | Indian market looks healthier, says $38 billion fund manager, as earnings cuts ease

Agrawal noted that markets dislike uncertainty, which has led to some selling pressure, but he believes investors should focus on earnings impact rather than short-term headlines. “The only way to approach this subject is to figure out at our end what could be the impact on the earnings – will there be a lasting impact, will it be deep, and how big will it be?”

He added that if an agreement is reached within the next few weeks, the effect on company earnings may be limited. He also pointed out that India’s economy is supported by domestic reforms and demand. “Earnings are what is going to drive the markets – nothing else,” he said, highlighting expected benefits from fiscal and monetary measures as well as tax reforms.Also Read | GST cuts and tax relief may offset more than half of Trump’s tariff impact: Pankaj Murarka

Agrawal suggested that any further correction could present a buying opportunity, particularly for investors holding cash. He said domestic institutional inflows remain strong and that India’s $4 trillion economy, driven largely by consumption, is positioned for growth regardless of external trade shifts.

For the full interview, watch the accompanying video

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