Whalesbook
Global Bull Run Endures
Indian equity markets have entered correction territory, with benchmark indices Sensex and Nifty 50 sliding more than 10% from their peaks amid global volatility and geopolitical tensions. Gautam Shah, founder of Goldilocks Global Research, however, asserts that the broader global bull run remains intact.
Corrective Phase, Not Bear Market
Shah views the current weakness as part of a broader corrective phase. He stated that the larger trend in global equities remains constructive despite short-term turbulence. The groundwork for this market reaction, he explained, was laid months ago as Indian equities began lagging their global peers.
Contributing Factors
The recent strengthening of the US dollar index has also pressured emerging markets, prompting capital shifts away from equities. Technical factors are playing a larger role as investors adjust positions after extended gains, Shah noted.
Near-Term Outlook and Strategy
Volatility is expected to persist in the near term, with markets potentially testing earlier support levels, possibly nearing lows seen in March-April 2025. Shah cautions investors against panic selling during these periods, emphasizing that corrections often create opportunities for those with a long-term perspective.
Preferred Sectors
Shah highlighted metals, public sector companies, and healthcare as preferred sectors. Opportunities are also emerging in quality small-cap and micro-cap stocks as valuations adjust.