Shankar Sharma Declares: The Epic End of the Mother of All Bear Markets in Equities – A Triumphant Turnaround!
Global equity markets are on edge due to recent developments in West Asia, but Shankar Sharma, founder of GQuant Investech, believes these tensions aren’t enough to trigger a full-blown bear market. While war, inflation, and other typical “bear market villains” have been effectively managed in the past, Sharma suggests that current disruptions may only cause mild corrections rather than prolonged downturns.
Turning attention to Asia, Sharma warns that China’s recent economic stimulus has bolstered its market capitalization by nearly $3 trillion, presenting a significant challenge to Indian equities. This shift means investors might now consider China a more attractive option, a stark contrast to the landscape of 2-3 years ago when Indian markets dominated the scene.
Despite the competitive landscape, Sharma remains optimistic about Indian equities, cautioning that their recent dip, influenced by West Asian tensions, is only a short-lived phase. He notes the fall hasn’t reduced valuations enough to entice foreign investors significantly. Instead of a bear market, Sharma predicts a cyclical slowdown, with sharp corrections followed by swift recoveries.
Furthermore, retail investors are increasingly turning to primary markets, which could impact liquidity in secondary markets traditionally dominated by small and mid-cap segments. However, Sharma is skeptical about the current wave of IPOs, suggesting they often come with inflated valuations, unlike the HDFC Bank’s IPO, which he famously endorsed in 1996. He emphasizes that most IPOs today offer limited future gains, unlike past opportunities.
In essence, while challenges are looming, the outlook for Indian equities remains steady, with cautious optimism prevailing in light of global and regional economic shifts.
Original Story https://www.business-standard.com/markets/news/the-mother-of-all-bear-markets-in-equities-is-dead-shankar-sharma-124100400551_1.html
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