'Will Indian equities stay muted for two years?': Investors split on recovery timeline amid global headwinds

The Indian market meltdown unfolded as a stark reminder of the intricate interplay between global economic pressures and domestic challenges. Amid rising inflation, geopolitical uncertainties, and intermittent policy shifts, investor confidence waned sharply, resulting in a pronounced drop in market indices.  

The sudden downturn not only eroded the value of equity portfolios but also raised concerns about liquidity and long-term economic stability. As panic spread, market experts urged investors to remain rational and avoid falling for baseless predictions, such as claims that markets would yield zero returns for the next two years.  

Nishant Kumar, a financial advisor, cautioned against blindly following market narratives. “Of late, I’ve seen many people saying that markets will not give any returns for the next two years. I call it parroting. 20% of ideas are original, 80% are parroted. Such ideas spread like wildfire even if there is no basis to them. Parroting is a common phenomenon in trading parlance where one analyst will say something and the rest will just mimic that stand. And that’s a very dangerous thing!!”  

His post triggered a massive discussion.  

“At least for this year, one should not expect returns, but for two years, the base effect will work well, and buying on dips will yield good returns,” one user argued. “The market is superior, anyone can go wrong, risk-reward and strategy should be given priority.”  

Another countered, “Markets will give returns. Many sectors are looking good — electronics, lab-grown diamonds, and many more are ready for growth.”  

A third investor highlighted the correlation between Indian and global markets, writing, “I don’t think people understand how Nifty, which was once leading, is now in sync with the US indices, right? Hope the naysayers are proven wrong with an explosive wave 5.”  

Analysts noted that while many Indian companies remain fundamentally strong, global volatility and internal fiscal pressures have created an uncertain environment. This period of turbulence has forced policymakers and investors to rethink risk management strategies, emphasizing adaptive economic reforms and resilience to mitigate future shocks.