Bear market on the horizon? Deepak Shenoy weighs in on incoming ‘doomsday’

Deepak Shenoy, the Founder of Capital Mind, believes this crisp correction gives a consciousness of impending doomsday. In a station connected X, Shenoy said, “Markets are being markets. 3% disconnected the apical and it sounds similar doomsday is here. It mightiness good be, but I've hardly ever seen heavy carnivore markets commencement erstwhile everyone thinks the extremity has travel close astatine the beginning."

Shenoy’s position tin beryllium seen arsenic a reminder to investors that markets are volatile and unpredictable. He implies that heavy carnivore markets seldom statesman with a cosmopolitan cognition of an impending crash. It means that erstwhile everyone is bracing for the worst, it’s often not the opening of a prolonged downturn but alternatively a impermanent blip.

Indian banal marketplace has seen a crisp bull rally arsenic the benchmark Nifty 50 has jumped implicit 20% successful the past 1 twelvemonth and much than 36% successful 2 years.

However, home equities person been experiencing beardown bouts of volatility successful caller sessions, weighed down by respective planetary and section factors.

The caller correction successful the home equities besides comes connected the backmost of sustained selling by overseas organization investors (FII) arsenic their full outflows exceeded ₹22,000 crore successful May 2024. FIIs offloaded Indian equities worthy ₹22,858 crore wrong the archetypal six marketplace sessions truthful acold successful May 2024.

Also Read: FIIs offload ₹22,858 crore successful 6 sessions: VIX to hawkish Fed—5 cardinal reasons causing bulk selling successful Indian equities

FII selling intensified arsenic Indian markets are underperforming, portion those of China and Hong Kong are outperforming.

Earlier this week, marketplace seasoned Shankar Sharma highlighted that a menace was lurking beneath India’s bull marketplace which helium believed to beryllium the azygous biggest menace - overcapitalization driven by the greed of merchant bankers and operators.

Read here: Some stocks volition autumn 90% successful adjacent carnivore market, warns Shankar Sharma

“Single biggest menace to this Bull Market are greedy Merchant Bankers & Operators, exhorting foolish promoters to rise excess capital, permanently destroying equilibrium sheets via implicit capitalisation. I repeat: These are the stocks that volition autumn 90% successful the adjacent Bear market," Ace capitalist Shankar Sharma wrote successful a station connected X.

On Friday, the Indian banal marketplace snapped a 5 time losing streak to commercialized higher amid short-covering and affirmative planetary marketplace cues.

At 10:15 am, the Sensex was up  483.11 points, oregon 0.67%, astatine 72,887.28, portion the Nifty 50 was trading 152.25 points, oregon 0.69%, higher astatine 22,109.75.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 10 May 2024, 10:16 AM IST