Valuation concerns and fund withdrawals by overseas investors have pulled back India's equity benchmarks from October highs. Veteran investor Ramesh Damani does not see that as a sign of worry.
He is “full-blown in the bullish camp despite some skepticism because of this current fall of 10%". The more than 1,000-point decline from the highest level is not something out of the ordinary, he said.
"I'm hopeful that the Indian bull market that began sometime around the lows of the pandemic of June 2020 will continue, and maybe go through a correction of a few months," he said. "That wont surprise me at all. That should be good. Markets have had a huge run-up. So there is nothing wrong with expecting consolidation for six months."
"But from where I see and invest, it seems to be that we are in a long-term bull market, and we have barely gone through the first few overs of that."
The focus on reforms and a strong capex cycle will be the pillars that will provide support, he said.
His advice to investors is to not look for quick returns. "Each bull market must make you richer, stronger, wiser. It's not good to make a lot of money in a bull market and lose in the bear market,” Damani said.
"One needs to retain that money and move on to the next bull market," he said. "A lot of those who have kept the faith and invested in Indian equities have grown richer, wiser, stronger at the end of every bull market.”
Watch the full interview here:
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