India’s stock market is facing a sharp downturn, with the BSE Sensex plunging over 15% from its September 2024 peak, wiping out ₹94.5 lakh crore in investor wealth. With FIIs pulling out ₹1 lakh crore from Indian equities this year, concerns over market stability are mounting. In an exclusive conversation with Business Today Executive Director Rahul Kanwal, Helios Capital’s Founder and Fund Manager, Samir Arora, shared his insights on the ongoing market turmoil. Arora predicts that while the bleeding may end in one to two months, rebuilding investor confidence—both foreign and domestic—could take longer. He highlights that market cycles are part of the investment landscape, with equities historically outperforming fixed income over the long term. Despite the current pain, he believes this phase is a natural part of market corrections, often triggered by factors like high valuations in small and mid-cap stocks. But can the market bounce back in 2025?
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