The 'Grand Finale' of stock markets is yet to come, says Raamdeo Agrawal

The US Federal Reserve's tabling of multiple interest rate cuts in 2024 set Indian markets to record highs on December 14. However, the 'Grand Finale' of stock markets is yet to come, told market veteran Raamdeo Agrawal in an interview with CNBC-TV18. Here are the top 10 takeaways from his interview:

1. The reduction in interest rates as predicted by the US Federal Reserve will help multiples re-rate across Indian equities.


2. The Indian equity markets are witnessing a 'goldilocks period' earlier than the mother market US.


3. The gap between India and US growth is significantly high. We have the support of good GDP growth, retail liquidity, and strong corporate earnings.


4. India is headed towards 25-30 crore demat accounts in the next few years.


5. Broader markets are also exhibiting strong cases of bull run. The smallcaps are now at Rs 18,000-20,000 crore market cap.

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6. India's credit cost cycle is quite strong right now.


7. With the yields falling from multi-year highs, I believe that the stock markets have already priced in the yield moves.


8. We are in a bull market, which always tends to end badly. Going ahead, I believe that the economic profit will be a true measure of companies.


9. The retail rush seen in capital markets and the rise of savings in India indicates a strong trend.


10. We are positive on asset management companies, broking companies, and exchanges.

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