Policy and consumer momentum driving Indian markets: Rajeev Agrawal

Rajeev Agrawal from DoorDarshi India Fund shared his perspective with ET Now on the ongoing US government shutdown and its implications for global and Indian markets. He emphasized the urgency of ending the shutdown, noting that “it’s very important the shutdown ends. Travellers and people waiting for pay cheques are affected. I hope Democrats and Republicans can work it out quickly.”

Agrawal explained that the shutdown primarily impacts sentiment and consumer spending in the US, which forms a large part of the country’s economy. “Federal employees pulling back on spending will slow things. For India, the effect is minimal since services and exports remain steady,” he said, underlining that the Indian economy is largely insulated from this disruption.

On the Indian stock market, Agrawal expressed cautious optimism. He said that although Indian markets have underperformed this year, momentum is building due to aligned fiscal and monetary policies and robust consumer spending. “The recent GST cut has boosted spending, which should support earnings growth and market performance in the coming quarters,” he added.


Highlighting promising sectors, Agrawal pointed to financials and capital markets as key domestic themes. He noted that the strong IPO pipeline and growing financialization present significant opportunities, particularly as more credit reaches the market.

Addressing concerns about India missing out on the global AI rally, Agrawal offered a contrarian view. “AI is a tool, not a threat. Companies using it effectively will benefit. Indian firms are adopting AI to lower costs and innovate. India hasn’t lost out—it stands to gain as adoption grows, giving it a global edge,” he said.

Overall, Agrawal’s insights suggest that while global uncertainties persist, domestic momentum and supportive policies could help India’s markets navigate the challenges ahead.