Navin Agarwal, CEO, Institutional Equities and Rajat Rajgarhia, MD – Institutional Equities, Motilal Oswal Securities spoke with CNBC-TV18 on the sidelines of the Motilal Oswal 10th Annual Global Investor Conference beginning today.
According to Agarwal, India is one of the best performing markets in the world currently and the foreign investors continue to repose their faith in the Indian equities.
Rajgarhia expects a 15 percent growth in the Sensex earnings in FY15 and 20 percent in FY16. He sees strong earnings upgrades happening and a lot of flows from India directed funds going ahead.
The key theme of the conference is likely to be the next move by the Reserve Bank of India and the government. The broking house believes the management by the RBI in the last nine months inspired a lot of confidence in the India economy and hence, the market.
Rajgarhia likes financials, industrials and consumer discretionary. He continues to remain bullish on midcap space and likes Arvind , Cox & Kings and Kaveri Seed from the pack.
Below is the verbatim transcript of the discussion:
Q: Your speakers list at your investor conference is impressive. Can you take us hrough your conference? What is the theme and tell us about the speakers that you are looking forward to?
Agarwal: This is the 10th year of the Motilal Oswala Annual Global Investor Conference. It has grown in terms of size and participation both from the corporates as well as from investors year after year.
This year we have over 110 Indian companies, 225 company representatives from those 110 companies that are participating in the conference.
On the investor side we have about 180 funds, global as well as domestic funds who are participating in the conference, about 750 people representing these 180 funds.
Q: Is this also an indication that you get more companies and more funds because the markets are bullish?
Agarwal: A whole bunch of things. So the political change in May has actually brought in a lot more interest from international investors. So we have for the first time the tally of international investors cross the 100 mark. This is something that is unprecedented and you should bear in mind that August season is a holiday season for the west with a lot of funds in the US and Europe actually being on holidays, this 100 plus number is not withstanding the holiday season there.
The political change, the earnings upgrade cycle, the strong performance of the market year-to-date we are up 25 percent, 12-month basis we are up 45 percent. This is one of the best performing markets in the world.
All these things have come together to create a big interest from the global investors and also from the local investors in the conference.