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Market My Beat: Why Patience Matters in the Current Phase

Investor Guide

Market My Beat: Why Patience Matters in the Current Phase

The past year has been a challenging one for equity investors, even as economic and corporate fundamentals have remained largely supportive. Interest rates have eased, GST reductions have been implemented, GDP growth has exceeded expectations, and corporate earnings, on the whole, have remained stable. Yet, despite these positives, stock market performance has stayed subdued.

 

India continues to be the fastest-growing major economy in the world. However, market sentiment has failed to mirror this strength. The primary reason for this disconnect has been sustained selling pressure from foreign institutional investors, which has weighed on stock prices across sectors. Importantly, this selling has not been driven by any broad-based deterioration in business fundamentals.

 

It is crucial to understand that the current phase represents a cyclical slowdown, not a structural breakdown. Most macroeconomic indicators remain favourable, balance sheets are healthier than in the past, and long-term growth drivers for the Indian economy remain firmly in place.

 

History offers valuable perspective. Every prolonged phase of market underperformance in India has eventually been followed by a period of recovery and wealth creation. This pattern has repeated itself consistently since the inception of Indian equity markets.

 

For long-term investors, periods like these test patience and conviction. However, they also reinforce the importance of staying invested in fundamentally strong companies rather than reacting to short-term market movements. Disciplined investors who maintain focus during uncertain phases have historically been rewarded when sentiment eventually turns.

 

Market cycles are an inherent part of investing. They have always turned in the past—and there is little reason to believe that this time will be any different.


For your success!

 

Dr. Anil Kumar Asnani

SEBI Reg. Research Analyst

Whatsapp: 9755920780

Mobile: 9131361959

Website: https://www.smartverc.com

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