STOCK MARKET DIP CLEANS EXCESSES OF LAST 2 YEARS

THE Indian equity markets have been 'imploding', falling 15 percent from their September 2024 peaks, eroding nearly 1 lakh crore of investors' wealth.

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Over the past five months, the unprecedented and persistent fall has clouded investor sentiments with fear and gloom. In the recent past-February-April 2020-we have seen the indices taking bigger hits of over 30%, but this time, the negative sentiments are more broad-based and hence more structural. FIIS have been dumping Indian stocks for more lucrative destinations the US, China, etc-due to stretched valuations of Indian equities and lower profitability of Indian corporates, a sombre economic prospect in the medium term and given the uncertainties around Trump's economic policies. India's fiscal policies have not helped the markets either. The decision