Indian stock market correction is part of bull run

Veteran investor Ramesh Damani recently stated that the recent drop in the Indian stock market is a typical correction within a longer bull market. He shared his views during an interview with CNBC-TV18 on March 24. Damani believes that current global issues, especially those in the United States, are causing temporary market fluctuations. However, he thinks these events will not alter the overall trend of globalization. He pointed out that the upcoming 2024 US elections, featuring Donald Trump, could signal a change in America’s approach to global affairs. According to him, America is becoming more focused on its own issues, which will have significant global effects. Despite these challenges, Damani remains optimistic about the Indian stock market. He sees the recent decline as part of a continuing bull market that started in 2021. He noted that even during the market drop, many individual stocks reached all-time highs, which is not typical for a bear market. Damani also addressed concerns over foreign investor selling. He mentioned that domestic investors are stepping in to buy when foreign investors sell. For those worried about the market’s instability, he emphasized that corrections are normal and can provide new buying opportunities. He reassured investors by stating that there is no excessive debt in the financial system and that the government has been careful with spending. In his view, there is no reason to expect a long-term bear market.