What the market correction means for Investors What the market correction means for Investors
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Direct Equity & PMS Market Outlook Wealth Management

What the market correction means for Investors

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Pratik Bagaria
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Direct Equity & PMS Market Outlook Wealth Management

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What the market correction means for Investors by Pratik Bagaria

Highlights

  • Key factors driving the market correction
  • Market corrections are a normal part of investing
  • Positive long-term factors amidst market volatility
  • Recommendations for investor action during this time
  • Portfolio management strategies by dezerv
  • Asset allocation and diversification beyond equity

Synopsis/Summary

  • Market corrections are normal, not aberrations: Since 2005, Indian markets have corrected almost yearly, yet always recovered. Current correction shows large, mid, and small caps down ~11%, ~20%, and ~25% respectively.
  • Four key factors driving this correction: Earnings growth slowing down to pre-COVID levels, unsustainable valuation especially in mid/small caps, US tariff uncertainties impacting exporters, and competitive US bond yields attracting foreign capital.
  • India’s long-term investment thesis remains solid: Despite the correction we are witnessing, India’s long-term growth story looks promising. Key positives include upcoming monetary easing, fiscal deficit reduction to 4.4% by FY26, tax relief boosting consumption, and healthier banking sector balance sheets.
  • Investments through Dezerv: While it is extremely difficult and counter productive to time the market, in anticipation of the market fall, we have been taking precaution by moving capital to ensure your portfolios are large cap heavy. We believe the valuations in the large-cap space are still reasonable and are expected to yield good returns over the next 3 years. This has played out well for our clients.
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Written By

Pratik Bagaria

Pratik Bagaria leads Public Market Investments at Dezerv, bringing two decades of experience in managing wealth for high-net-worth individuals and family offices. An IIM Ahmedabad MBA, Pratik has built his career at the intersection of institutional-grade investment thinking and personalised wealth management—combining rigorous analytical frameworks with an intuitive understanding of each client\'s unique financial landscape.

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