In an interview with ET Now, Raamdeo Agrawal, Director & Co-Founder, Motilal Oswal Financial Services, shares his outlook for the market. Excerpts:You are right. However, political change should lead to economic change - good politics should lead to good economics. The market is hoping that a massive change at the Centre in May should bring an economic change, which did not happen for last three-four years. For the next six months, we can only expect this hope to build up as the event comes closer to the day. Today, people are betting on the waves which they have seen.Markets are a complex system - they have their local ministers and they have the foreign ministers. Then, there is the global dynamics at work as well, with tapering issues round the corner and the eventual behaviour of the foreigners. Secondly, the domestic investors also influence the opinion in a major way on how the market would fare.One needs to bear in mind that it is not only about buying. If you do not sell, that has more impact than just not buying. So clearly if the foreigners want to come in the next six months and the domestic investors stop selling, that in itself can take the market to a different level.However, it takes a little time to demolish the markets by pessimism. Similarly, the optimism that we are seeing today can take the market to a very different level and that is what is going to be the story for the next six months.Quite possible, since one can never rule out any possibilities. However, when the UPA II came in, the markets gave a ‘salami’. Today, there is a semi final, which is close to a final, and again, the market is doing a ‘salami’.Now, it all depends on the people who are likely to come in power - to have learnt from the last experiment and they must try to live up to the expectation of the people. Actually since the last government went into a so-called policy paralysis instead of policy hyper-action, if the same thing gets repeated again, obviously the outcome will be the same.Investing in equities is not about buying-today-selling tomorrow. Timing is not the issue. The real issue is that you must buy equities when the selling permits you and you should have a portfolio of good quality companies. Therefore, investing has to be business-like, which has to be very intelligent and one should not be carried away by emotions. If today the market goes up by 500 or 600 points, tomorrow morning the whole nation should not come in and start buying the stocks that had gone up yesterday. Methodically speaking, the businesses will have a better play in India, in terms of trying to make money, and hence the market does think that India Inc will make more and faster money in the next 10 years.Selectively, one has to look at the local cyclicals. The ones that were badly impacted by policy parameters in the last 10 years were majorly oil and telecom companies. Though it may not have been intentional, but that has been the result. Therefore, those sectors should see the biggest delta, if the regime changes.But on top of it, the collateral damages are eventually borne by the banks and in that sense, the PSU banks have been the biggest sufferers, on account of the bad loans that the corporates have generated. Moreover, we need a policy change even in the outlook on the PSU banks. There has to be a rethinking about how to manage the PSU banks so that they become competitive players in the banking space. Apart from the profitability of PSU banks, their management is important for the way we handle the savings in our country. Therefore, there has to be a dramatic shift in the entire thought process also.No. Indian IT companies, particularly the large companies, have almost 95% revenue coming from the developed world and hence their revival and their growth are more important issues.There are five parameters - cost, volume, price, mix and currency. Therefore, currency will be somewhat stronger compared to what it is today. However, the Indian IT companies are not used to 60-62 levels, they are used to 45-47 or 50 at best. So even if the rupee goes to 55 or 57 in the most optimistic scenario, it is still a fantastic level for these IT companies. I think the important thing is to have a stable currency. 55 as a stable level is much better than a fluctuating 60-62. So the real driver of the Indian IT is the demand scenario from the US and Europe.Just to put the fact in perspective, the US market has created almost $9 to $10 trillion of market cap. Today, the US markets are $22 trillion plus of the market cap. You are going to see a massive revival of consumerism in the US and that is going to drive the US economy and hence the demand for Indian IT. So if the US goes below 7% unemployment level, you are talking about massive jobs for many people in the world and that includes Indian IT. I remain optimistic on Indian IT.