Local investors to pump $70 billion annually into markets, says Ashwini Agarwal of Ashmore Investment

Market Outlook

Domestic retail investors have been consistently buying stocks over the past six months.

Domestic investors may continue to pump $ 70 billion into the stock market every year, Ashwini Agarwal, Portfolio Manager at Ashmore Investment, told CNBC-TV18 in an interview on April 26.

“We should not expect this interest (from local investors) in the market to go down in a significant way,” Agarwal said.

Domestic retail investors have been consistently buying stocks over the past six months and helped in absorbing more than Rs 2 lakh crore net outflows from foreign portfolio investors since October 2021.

Despite concerns over aggressive interest rate hikes by the US Federal Reserve, Russia’s invasion of Ukraine, and soaring global crude oil prices, direct and indirect investments from retail investors have remained steadfast.

“There is no let-up in risk appetite among local investors,” Agarwal said.

On the investment side, Agarwal argued that automobile stocks could see a revival going ahead as the business cycle in the industry turns positive following a four-year long downturn.

“We should see a positive demand cycle start soon enough for automobiles,” Agarwal said. Automobile stocks have found currency with investors in recent sessions with both two-wheeler and passenger car makers finding favour.

On the real estate space, Agarwal sees scope for demand to remain strong over the next few years but said investing in real estate stocks remains tricky.

At 11:10 am, the Nifty Realty index was up 2 percent at 439.7 points.

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