ഓഹരി വിപണിയിലെ തകർച്ച അവസാനിക്കുന്നുവോ? രണ്ടാം പാദഫലങ്ങളിൽ പ്രതീക്ഷയർപ്പിച്ച് മോത്തിലാൽ ഓസ്വാൾ

The Indian stock market may get some breathing space in October as fundraising through qualified institutional placements (QIPs) is likely to slow during the earnings season, Motilal Oswal Asset Management Company MD and CEO Prateek Agrawal said in an interview with Zee Business Managing Editor Anil Singhvi.

Agrawal said the recent selling pressure could continue in the near term due to profit-taking and other factors, but the market outlook remains positive.

"Our optimism remains," Agrawal said, adding that the market could see some improvement from next month.

Benchmark indices slumped up to 1690 points or 3 per cent in the last five sessions, with Sensex ending the week below 72,000. Meanwhile, Nifty 50 declined 694 points to end below 22,500.

The market eroded all gains for the past four to five months, settling at the levels seen in March 2026.

According to Agrawal, the flow of money into and out of the market is an important factor in determining the near-term direction of equities.

While foreign selling may continue, fundraising through QIPs and IPOs could moderate as the results season begins, he said.

"Usually, in such a month, the market gets a chance to breathe, especially the broader market," Agrawal said.

He explained that QIPs tend to slow during the earnings period, reducing the amount of money being raised from the secondary market.

Agrawal said domestic investors, including mutual funds, insurance companies, pension funds, banks and retail investors, continue to provide significant liquidity to the market.

On corporate earnings, Agrawal said the September quarter results could be stronger than those seen in the June quarter.

He expects some improvement in the banking sector as lenders brought in funds during the second quarter and should have started earning from those funds.

The full impact, however, could be visible more clearly in the third quarter, he said.

Agrawal also pointed to the delayed monsoon this year as a factor that could support activity in sectors linked to construction and infrastructure.

He said the later arrival of rains provided additional time for activities such as road construction, electricity generation and mining, which could support year-on-year growth in the September quarter.

Agrawal said government measures have helped insulate the Indian economy from the rise in global oil prices.

He pointed out that higher crude prices have pushed up logistics and power costs in several global markets, while the impact on these costs in India has been relatively limited.

This could provide some benefit to Indian manufacturers competing globally on price, particularly through better margins, he said.

Discussing foreign investor selling, Agrawal said the scale of foreign outflows needs to be viewed alongside domestic flows and fundraising activity.

He said domestic investors typically bring around USD 8-10 billion into the market in a month, depending on market conditions.

If foreign investors withdraw around USD 3-4 billion while fundraising through QIPs declines, the amount of money available for secondary-market investments could improve, he said.

"Chances are that in October the net money in the market increases," Agrawal said, adding that this could provide support to equities.

On new-age and digital companies, Agrawal said Motilal Oswal AMC continues to have exposure to various growth-oriented sectors, including digital platforms, defence, renewable energy and electric vehicles.

He said the firm's investment approach is based on the belief that markets ultimately follow earnings growth.

"Market follows earnings growth," Agrawal said, adding that companies delivering earnings growth above the broader market have a greater chance of generating excess returns.

Agrawal said the portfolio therefore focuses largely on businesses with high expected earnings growth over the next two to three years.

Agrawal said the current period is one of disruption, with traditional businesses having to adapt while new businesses emerge.

He compared the situation with the growth of the IT services industry during the 1990s, when sustained earnings growth eventually translated into strong market performance.

He said several new sectors have emerged over the past six to seven years and some of the companies that started small have already grown into large-cap businesses.

The combination of high growth and long-term growth potential in these newer businesses could continue to create opportunities for investors, he said.