"India's stock market is fairly valued"

Raamdeo Agrawal on the right approach to trading derivatives and why a market turnaround might be round the corner

- BY SIDDHARTH ZARABI

In a wide-ranging interview conducted soon after the Securities and Exchange Board of India's (Sebi’s) order on Jane Street, veteran investor and Chairman and Co-founder of Motilal Oswal Financial Services, Raamdeo Agrawal, says stock trading might work for some and not for others. Edited excerpts:

SZ: Many retail investors are seeking advice after the Jane Capital case where the firm is accused of manipulating markets and making massive unlawful gains. What are the lessons from this as far as derivatives trading is concerned?

RA: In trading, very few people make money. But the guys who are masters, those who have proficiency in handling a lot of data, use a lot of computers and have the gut feeling for trading have done well. What is important is your experience. If you have been making money in the last two-three years, who can stop you? If there are one billion guys in the market, there are one billion ways of making money. With all these actions (Sebi’s ₹4,843 crore fine on Jane Street and steps to check market manipulation), there will be some changes in market movement, and the probability of you making money might go up a little bit.

SZ: We are seeing continuing global uncertainty. Amid this, domestic growth seems to be strong. Where are our markets headed over the medium and long term?