Raamdeo Agrawal, co-founder of Motilal Oswal Financial Services, spoke to CNBC-TV18 about geopolitical concerns weighing on the market and shared his stock recommendations.

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"The biggest event, apart from what we are going through geopolitically, is the election," Agrawal said on Thursday.

According to Agrawal, geopolitics may lead to polarised voting in elections.

Talking about midcaps and smallcaps, Agrawal said, “My understanding or what I have seen in the last one-and-a-half-year, small-caps managing mutual fund is that when domestic money comes it comes in a distributed midcap, smallcap funds and a lot of small PMs and that money chases mid and smallcap companies – that flow is definitely negative and it is becoming worse by the day. So till that reverses I do not think generalized good time for mid and smallcap, but individually a company, if something a hammered down to much more level then of course it can come up on its own fundamental.”

“Every business after 2 or 3 years of growth takes a breather but market doesn’t know how long this breathing is going to continue,” he added.

On oil marketing companies’ front, Agrawal said, “Oil marketing companies are running a monopolistic business. It’s a 24/7, 365 days business and it’s an ultimate retail and making 2 percent on their sales is not too much to ask for.”

Disclosure:

Motilal Oswal is is one of the four launch partners of CNBCTV18.com.