Markets would continue to trade in the growth zone

Updated: Dec 30 2007, 06:32am hrs
Have the markets peaked, or will there be a strong correction These are the key questions boggling the investors mind. Ramdeo Agrawal, non-executive director, Motilal Oswal Financial Services, Indias reputed brokerage house and financial services company spoke with Rajesh Naidu of The Financial Express to dispel some fears. Excerpts

What are the key indicators and developments and triggers investors should watch out for in 2008

Considering the performance, markets have been demonstrating, there are many interesting developments one can expect in 2008. I think the markets are moving in a reasonably good zone. To make it more interesting is the solid performance of corporations. Also, the softening of interest will continue to provide cushion on the balance sheet and investors alike. So, all in all, markets would continue to trade in the growth zone.

What is your outlook on the markets for the year 2008

One of the best aspects of the markets this year has been growth fostered with increasing liquidity. If you look at the past few years, this was hardly foreseen and spoken about. But today, look at the earnings demonstrated by corporations. This is a healthy sign. In my view, the markets are still going strong and it will continue to grow stronger in the coming year. But you also need to look few factors like global cues, FIIs money-infusing and sucking out patterns and more importantly, a long-term view on the markets. Considering these factors, I think markets are well-placed and we need to be positive at this moment.

Which are the sectors you are bullish on

The India-building story continues to be attractive and intact. Also sectors like steel, cement, telecom and financial services would be lucrative considering the positive developments occurred in these sectors and their continuing impact in the coming year.

What would you advice to the investors for the coming year

Taking into account the amount of money investors have made and the liquidity that has come into the markets, I would recommend investors to stay invested. Also an important parameter, which investors need to be aware of, is that of corporate earnings. As long as the corporate earnings factor shows a rosy and convincing picture, there is no need investors need to wary of. More so, one can also employ an idea-specific approach. The reason being markets are so favourable that every new idea is giving tremendous results in terms of returns. But still the thing to watch out for is the corporate earnings. Rest all is fine.