Over the last few days, we have seen a meaningful correction in the Indian equity markets. The Nifty50 index witnessed a dramatic drop of 5.5% from its all-time high in mid-September.
Our co-founder, Vaibhav Porwal, has summarised his views on the current market scenario in a short video.
Here’s what’s included in the video –
1. What caused the recent market correction?
The 2 major factors leading to this correction are
➡Israel-Hamas War
➡Interest rate changes
2. What is the impact of recent events on the markets and investors?
No meaningful long-term impact on the economic fundamentals
In the short term, investors have started moving toward safe assets like gold and fixed-income assets
3. How should investors look at their investments in the current market scenario
In the short term, because the interest rates are high, it’s a great time to invest in fixed-income instruments
In the long term, investors need to look at 2 types of fundamentals
➡Economic fundamentals – GDP growth etc
➡Market fundamentals – P/E ratio, Debt/Equity ratio, earnings growth etc.
Highlight
- Vaibhav Porwal breaks down the recent equity market correction—explaining its causes, its impact on investment strategy, and where to find opportunity amidst the downturn.
Vaibhav Porwal, Co-founder, Dezerv
