As Indian markets see a growth in the equity culture, capital markets regulator Securities and Exchange Board of India's (SEBI) work will make more people a part of the movement, taking the number of direct equity investors to over 20 crore, said Raamdeo Agrawal, Chairman, Motilal Oswal group.
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“We have about 130 million demat accounts, growing at about 2 to 3 million accounts per month. In the next 13-14 months, we could see it crossing 200 million -- which is probably one of the world's largest investor bases -- thanks to digital infrastructure and SEBI,” he said at a recent media interaction.
The current environment and the Indian economic growth are supportive of high-growth, high-quality portfolio investing. By May-June 2024, Agrawal also sees opportunities for the development of new industries and growth beyond what the existing industries are seeing, post-March next year. “It's a very interesting time to manage money,” he said.
Once FIIs also return, triggering retail investors to adopt a buying stance, the market dynamics are expected to shift. There is confidence that the market's divergence will eventually be addressed when large caps catch up, Agrawal said. While the timing and duration of this adjustment remain uncertain, the positive FII performance over the next 5 to 6 months has the potential to significantly alter the market landscape, Agrawal noted.
Also Read: Listen to Raamdeo Agrawal's insights in the latest episode of Market minutes podcast
Agrawal praised SEBI's work headed by chair Madhabi Buch in terms of opening dialogue with the industry and creating regulations. “I meet customers almost every day and see people who have never heard of the stock market coming in.”
“I have seen various markets and bull runs, but today, thanks to the presence of SEBI, a fantastic digital control and business management company, I think we are in a very safe place,” he said. Agrawal also believes that over the next decade, the assets under management (AUM) of the industry (Mutual Fund, AIF, PMS) could get to Rs 100 trillion from around Rs 30 lakh crore currently.
Agrawal said that mutual funds, PMS, and AIFs will play an important role in helping these growing investors manage their portfolios, making opportunities in the market immense.
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