Amid recent volatility and a sharp sell-off in equities, Axis Capital MD & CEO Atul Mehra struck a reassuring note, describing the current market phase as a "dislocation, not a fracture." Speaking to NDTV Profit, Mehra emphasised that while markets have corrected nearly 7% over the past month, the recent 2-3% recovery signals underlying strength.
According to him, India's capital markets continue to stand out due to a resilient economy, strong corporate leadership, and a structural shift towards financialisation of savings. This domestic flow of capital, he said, has acted as a key buffer during turbulent global conditions.
Looking ahead, Mehra expects deal activity to remain strong across sectors such as financial services, consumer, industrials, power and energy, as well as emerging areas like electronics manufacturing services (EMS) and data centres.
Mehra advised investors to avoid overreacting to short-term volatility. Instead, he recommended a measured approach-reassessing risk, recalibrating strategies and maintaining realistic return expectations. Drawing from decades of market cycles, he noted that such corrections are part of a broader journey. "This doesn't require major intervention. It's a phase where patience will likely reward investors," he indicated.
IPO Market: Pause, Not a Slowdown
On the primary market, Mehra highlighted that the IPO boom seen in recent years is not a one-off phenomenon but part of a sustained multi-year trend. He pointed to strong participation across investor classes-ranging from retail investors to global institutional funds-as a key driver.
While recent volatility may lead to short-term delays in listings, he expects the IPO pipeline to remain robust. "This is more of a pause than a disruption," he said, adding that activity could pick up again within the next few months as market stability returns. The quality of companies tapping the market has also improved significantly, which should support continued investor interest.
On deal-making trends, Mehra clarified that mergers and acquisitions are less influenced by market swings and more by strategic intent. Unlike IPOs, which can be timing-sensitive, M&A activity is driven by long-term business objectives.
He also noted a shift in the deal landscape, with private equity players increasingly taking the lead in acquisitions alongside traditional strategic buyers. While financing conditions may vary with market cycles, the broader M&A momentum remains intact.
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