India’s equity markets have been through a lot of volatility over the past 12-18 months, whether it was the US import tariff-related uncertainties last year or the more recent US war on Iran. Foreign portfolio investors have been heavily selling Indian equity. As Raamdeo Agrawal, the chairman and co-founder of Motilal Oswal Financial Services, puts it, there is too much “chaos” and "noise" right now. 

Agrawal has always taken a long-term view on India, following a ‘buy right and sit tight’ strategy. But does this approach still work in today’s uncertain environment, especially when markets have faced one headwind after another over the past few years? 

“Businesses are still the same, but just the noise around that is so much that taking a long-term view becomes very difficult. The strategy works, but you need a lot more patience,” he tells Business Today. 

Agrawal still remains bullish on the long-term prospects. “Uncertain periods that we have been through in the last few months due to the conflict in West Asia are like potholes, which one will encounter from time to time. However, eventually peaceful times do return, and the Indian economy remains on a strong wicket,” he said. 

MUST READ: RIL AGM ahead: Shareholders gain Rs 1 lakh cr in three days; analysts unveil price targets

“GDP growth of 7.8%, with 3-4% inflation, what more can you ask for? You might have seen the credit growth of 17%. So, the economy is doing well, corporates are also doing well. There may be some concern around earnings in this (April-June quarter), but as the war ends, things will fall back into place,” he said.  

Agrawal insists that in unpredictable times, like we have been in the last few months, an investor should remain calm and not panic and sell.  

"You should have conviction about what you have bought and sit through, because over ten years these things don't matter. That is the only way to make money," he stressed.  

Agrawal notes that India has produced maximum multibagger stocks over the years and will continue to create more multibaggers over the next couple of decades.  

Domestic institutions have been big investors in the Indian market on the back of sustained retail flows into mutual funds. Over Rs 30,000 crore is coming into mutual funds via monthly systematic investment plans alone. 

However, foreign investors have been selling heavily. In 2026, till June 15, foreign portfolio investors have offloaded Rs 2.88 lakh crore in Indian equity. In 2025, they sold Rs 1.66 lakh crore in the equity market.  

MUST READ: Jio Platforms IPO: All eyes on Reliance AGM 2026 on 19 June- issue valuation, expectations

Agrawal says India still remains an attractive market, but FIIs have been finding other markets better, whether it's with opportunities like artificial intelligence (AI) or valuations, which are also cheaper than in India, and that is driving the huge selloff. 

“What do you do when some other markets are doing much better than India, and they are available actually cheaper also. So, FIIs are just exercising their opportunity to sell out of India and go there,” he noted. 

The sharp fall in rupee against the US dollar has been another drawback for FIIs as it erodes their portfolio returns. Given they have large holdings, the FII sell-off will be of concern for policy makers, according to Agrawal. 
But he pointed that the rupee depreciation had also made Indian services more competitive and will help build up our export base. 

The RBI, as well as the Centre, have earlier this month announced several measures to strengthen foreign fund flows. The RBI opened a special window for banks to mop up FCNR (B) deposits and the Centre exempted FIIs from capital gains tax on income earned from investments in government securities (G-Sec).  

The definition of overseas individual investors in listed equity investments has also been expanded to include all individual individuals residing outside India, including Non-Resident Indians and Overseas Citizens of India under the foreign portfolio investor scheme. 

MUST READ: SpaceX shares jump over 8% in pre-market trading; details here

Agrawal feels the decision to exempt FIIs investing in G-Secs from capital gains is a “gigantic move” and believes once the rupee stabilises money will start coming back to India. “When the fear of rapid devaluation goes away, then money will gush in,” he adds. 

The rupee, which had hit a record low of close to 97 against the US dollar in May, has since recovered and provisionally closed at around 94.55 against the greenback on Tuesday, June 16, 2026. 

NSDL data shows FPIs have already invested over Rs 25,000 crore in India's bonds in June, till June 16, which includes Rs 17,000 crore via the fully accessible route (FAR).  

MUST READ: Sensex, Nifty extend winning run; investor wealth rises Rs 19.9 lakh crore in 3 sessions