Around 25 years ago, two young men founded a small brokerage firm in Mumbai with very little money and a big heap of dreams. Today that brokerage firm has become one of India's largest homegrown, fully diversified financial services company. The company is Motilal Oswal Financial services.
Motilal Oswal, Chairman and Managing Director and Raamdeo Agrawal, Joint MD of the company share their story in an interview with CNBC-TV18.
Below is the edited transcript of his interview with CNBC-TV18. Also watch the accompanying videos.
Q: 25 years has been quite a journey. For 25 years you have seen various business cycles. You must have seen lot of hope, lot of despair, where would you put where we are today on a scale of either hope or despair?
Agrawal: One of the things I have seen in the stock market and particularly for the economy underlying is that every seven years, you have one cycle. This seven year cycle at least for Indian markets, is again going to happen. The next appointed date for the boom is 2014-15.
Q: Do you think we are overdoing the pessimism?
Agrawal: Yes, for sure. But it's a cycle. When there is pessimism, people talk about pessimism. When there is a bull run, for example if you look two years back, you see the headlines and we were talking about double digit growth then.
Q: But, here we are talking about double deficit, policy paralysis.
Agrawal: It's all there. I am not saying that there is no policy paralysis or there are no problems. There are problems. But it's a process. Once the problem comes, you start highlighting them. The guys who are responsible start taking steps, they are also cornered. They cannot say that we don't want to do anything.
Q: Are you as optimistic?
Oswal: I am a born optimistic.
Q: The last fall hasn't ground that optimism down?
Oswal: As Raamdeo said, we have seen those kind of cycles and we have to accept the fact that financial services and even in Indian economic cycles, it will