Indian Stock Market Sees Strong Growth Despite Corrections
According to market veteran Madhusudan Kela, the Indian stock market has experienced significant growth since the COVID-19 pandemic, with the exception of the last 12-15 months. Speaking at the Mint Annual BFSI Conclave 2025, Kela emphasized that the market tends to give average returns over time and that exceptional periods of growth are often followed by a correction.
A Bull Market in Mid and Small-Cap Segments
Despite the recent underperformance of the market, Kela believes that there is a bull market in the mid and small-cap segments. He attributes this to the fact that investors who have stayed committed to the Indian market have been rewarded with significant returns over the long term.
Kela cited the example of Rakesh Jhunjhunwala, a well-known investor who made significant gains by remaining invested in the Indian stock market. He noted that conviction and patience are key to success in the market, as even the best investors experience periods of underperformance.
Identifying the Right Sectors and Companies
Kela emphasized the importance of identifying the right sectors and companies to invest in. He believes that bottom-up investing, which involves focusing on individual companies rather than the overall market, is the key to success in the Indian market.
- Identify sectors with growth potential
- Find companies with strong fundamentals and potential for growth
- Conduct thorough research and due diligence
- Have the conviction to hold on to investments even when they experience significant growth
Cryptocurrency: A Lesson for Investors
Kela also spoke about the importance of not dismissing new asset classes, such as cryptocurrency. Although he did not invest in cryptocurrency himself, he noted that it has grown into a trillion-dollar industry and that investors should be open to evaluating new opportunities.
Overall, Kela's message is one of cautious optimism and the importance of staying committed to one's investment strategy over the long term. As he noted, equities are likely to remain one of the best asset classes to invest in India, with the potential for significant returns over the next 15 years.