Election impact may keep markets fluid for some days but no threat to corporate profits: Raamdeo Agrawal

We may see some more correction for 1-2 more days, but the India story remains intact: Raamdeo Agrawal

Market veteran Raamdeo Agrawal said the unexpectedly narrow contest in assembly elections 2024 may not dent India's corporate profits or the growth forecast. However, FIIs might continue to show a bias to sell as a sentimental reaction.

The mandate, which has captured a tighter contested between ruling NDA and the INDIA, has sent the benchmark Nifty 50 index to its biggest intra-day drop in over four years.

In conversation with CNBC-TV18, Raamdeo Agrawal said that FIIs too have been looking for an opportunity to enter India's stock market in a major way.

A true investor would remain invested through this crisis; it is not prudent to buy high and sell low, he added. Today's example is a classic example that details the risk of investing the market.

The key monitorable at this juncture will be what foreign investors will do in this politically unstable environment, especially since there is a lot of mess in the market right now.

In case the benchmark index correct another 5-10 percent over next few days, Agrawal said that the index would look very healthy, given the near 8 percent GDP that India has achieved in the financial year gone by.