Nifty may hit 30,000 when FIIs begin to reenter India, says Raamdeo Agrawal

Veteran investor and co-founder of Motilal Oswal Financial Services, Raamdeo Agrawal advised Indian investors to maintain patience even as foreign investors seem to grow restless.

Speaking at CNBC-TV18 Global Leadership Summit, Agrawal highlighted that while foreign investors have the flexibility to shift to other markets like China or Korea, they may face a premium on reentry into India as the market continues to grow. “Once they exit India, the price for reentry will be much higher, and maybe when they come back, the Nifty index will reach 30,000,” he said.

Agrawal emphasised the importance of long-term investing in a market known for its compounding potential, pointing out that only two markets—India and the US—offer consistent compounding returns. “For those who invest their savings in equities, they should stay fully invested and not try to time the markets. I’ve seen this approach work brilliantly over the past 45 years,” he shared, urging investors to embrace short-term volatility for the reward of steady, long-term gains.

Further, Ramesh Damani, a prominent market analyst, stressed the importance of compounding as a tool for wealth generation in India, encouraging young investors to stay invested. “The magic of compounding can lift a generation from poverty to wealth if applied consistently,” he noted.

Damani also weighed in on the impact of US politics on global markets, noting that the recent U.S. elections have resulted in an unprecedented consolidation of power. “For the first time in 75 years, a US President holds unchecked power, with control over the White House, Senate, Supreme Court, and popular vote,” he said, observing that the “America First” approach could lead to an inward-looking US, with broader implications for global markets.

Moreover, Manish Chokhani, director at Enam Holdings, also expressed confidence in India’s growth trajectory. Recalling the expansion of India’s market cap from under $200 billion in 1999 to over $5 trillion today, Chokhani projected further growth in the coming two decades. “If we don’t see a 10-15 fold increase in the next 20 years, I’ll be surprised. We’re on a take-off trajectory,” he said. Chokhani encouraged investors to seize favourable entry points and have faith in the market’s long-term potential.


Meanwhile, Ashish Kumar Chauhan, managing director and CEO of NSE, discussed the persistent challenges around over-trading in India. He acknowledged that while over-trading issues continue to emerge periodically, exchanges play a crucial role in offering platforms to manage market risks. Chauhan added that derivatives trading would see gradual evolution, with newer mechanisms eventually overtaking some legacy systems, though these may continue to outperform in certain scenarios.

Across the panel, experts reinforced India’s unique advantage in compounding returns, a benefit it shares with only a few global markets like the US, “Stay invested and wait for compounding to work its magic,” Agrawal concluded, underscoring that long-term growth remains the prize for investors willing to weather shorter-term fluctuations.