ART OF SURVIVING, THRIVING IN MKT

I have often felt that for all the positive domestic retail investor numbers that were being reported regularly over the last several years, the real test for the Indian equity market would come in case of a longer than usual, if not prolonged correction in a market that has been on a one-way rising trend since the early Covid days, almost five years ago.

- ASHOK KUMAR

And that moment may well have arrived. Before looking at how one might want to react in a sliding market, let us first look at why it turned into one. For a long while, valuations have been running far ahead of performance and the Q3 results were a wake-up call about the wide lag in performance versus valuation in the market.

That it coincided with US Court strictures on promoters of one of India's largest business groups hardly helped matters as Foreign Institutional Investors (FIIs) commenced an exodus of sorts from the Indian bourses. The impact of their rapid selling of mega large caps was seen on the Indian market indices that went into a tailspin.