No Bear Market Ahead: Ramesh Damani Says Stocks Underwent A Bull Market Correction – News18
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The recent selloff in the Indian stock market was a normal correction within a broader bull run, said veteran investor Ramesh Damani
Rakesh Damani On The Recent Stock Market Correction
The recent selloff in the Indian stock market was a normal correction within a broader bull run, said veteran investor Ramesh Damani during an interaction with CNBC-TV18 on March 24. Globally, political and economic shifts—especially in the US—are creating temporary turbulence, but Damani believes they are unlikely to disrupt the long-term trend of globalization.
America’s Inward Turn and Global Impact
According to Damani, the 2024 US elections, with Donald Trump at the forefront, signal a shift in America’s global stance. “The world is not moving left or right, but for the first time, America is turning inward, and that has profound consequences globally. The world is about to change,” he noted.
However, while globalization might be delayed, it cannot be denied, he emphasized. “The US has always progressed. Either Trump will adapt, or democracy and the people’s aspirations will steer change. Despite current economic turbulence, this shift is unlikely to be permanent. Trump and the MAGA movement will face a tough economic lesson as they attempt to tackle fears of America’s manufacturing decline,” Damani added.
A Correction, Not a Reversal
Remaining bullish on India’s stock market, Damani sees the recent correction as part of the ongoing bull run that began in 2021. “The first major correction in about five years was severe, but corrections in a bull market are typically short, sharp, and swift—just like the one we’re witnessing now. This is not the market topping out,” he explained.
He pointed out that even as the indices declined, many individual stocks hit all-time highs, which is not characteristic of a bear market. Additionally, India Inc continues to focus on expansion, growth, and improving margins, reinforcing economic resilience.
Dismissing concerns over foreign investor (FII) selling, Damani noted, “Every transaction in the stock market has a buyer and a seller. When FIIs sell, domestic investors are stepping in to absorb the outflows.”
No Easy Money, No Excessive Leverage
For investors worried about market volatility, Damani offered a pragmatic perspective. “There is no such thing as easy money on Dalal Street. Market veterans have always warned that corrections lead to panic, but this is simply a self-correcting mechanism,” he said.
He added that anytime valuations become excessive, selling pressure emerges—creating new buying opportunities. Damani also highlighted that there is no excessive leverage in the financial system, and the government has exercised fiscal restraint, keeping liquidity in check.
“There is no reason to believe this is a prolonged bear market,” he concluded.
