Raamdeo Agrawal keen to gauge mood of foreign investors after run up in stocks

"I think the only concern is valuation," Raamdeo said, citing it as the primary factor that has deterred global investors from participating in this phase of the market upmove.

Veteran investor Raamdeo Agrawal is keen to gauge if foreign institutional investors are reviewing their stance on India after elections, or concerns about high valuations are still keeping them away.

At the 20th Annual Investor Conference of Motilal Oswal, also known as MOAGIC, Raamdeo Agrawal will be scouting for bright spots and newer opportunities as well as trying to assess what the behaviour of FIIs will be, the chairman of MOFSL said in an interaction with CNBC-TV18.

"I think the only concern is valuation," Raamdeo said, citing it as the primary factor that has deterred global investors from participating in this phase of the market upmove. "We have to see FIIs' mood, they were waiting for the election event. We now need to see if they are as positively inclined as DIIs, or will valuations keep them away," Raamdeo added, adding that FIIs may have a choice of not investing and scout of other opportunities, however a domestic institutional investor has to buy India.

On a net basis, foreign investors have bought shares worth $4 billion since the start of June, and have offset the selling that had been seen in April and May, according to data from Bloomberg.

Analysts told Bloomberg News that future realignment could bring $100 billion of foreign money into India over next 3-5 years as Modi 3.0 steps up on economic continuity, with focus on agriculture, infrastructure and fiscal discipline.

On the recent regulation to check F&O activities, Raamdeo is still upbeat of businesses in the capital market space, and expects top and bottomline of companies here to test all-time highs in a year or two. "I would think with a little brake and the market adjusting to lower volumes, in a year or two, we will see all-time highs in terms revenue and profit, even with F&O curbs," Raamdeo said, adding that the response of the companies to the regulatory tweaks is yet to be seen, and funds may keep pouring in, whether in into cash or futures segment.

Also Read: While FPIs were selling banks in July, mutual funds provided the buying support

Raamdeo also does not see the upcoming state assembly elections to deterring markets in any way.

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