PSU banks attractive, domestic demand key; earnings, not valuations, will bring FIIs back: Raamdeo Agrawal

Raamdeo Agrawal, Chairman of Motilal Oswal says PSU banks are among the cheapest opportunities today after years of cleanup. He expects credit growth and domestic demand to drive a multiplier effect, sees earnings picking up over the next year, and warns that excessive valuations—not weak businesses—are behind recent stock corrections.