Recent Market Volatility - A Perspective

Stock Market Volatility

For a long time now, the Indian financial markets were performing exceedingly well. And then all of a sudden, in the last few days Indian stock market has been experiencing major volatility. Here is our perspective on what has been happening so far. Watch our Fund Manager videos and interviews to know their view on this topic.

Gains (in equities) do not accrue in a linear fashion. In the long term the stock market is a slave to earnings. But in the short term it resembles the outcomes of a voting machine more than it does a weighing machine which is calibrated for consistency. Economic cycles, evolving and changing businesses combined with the emotions of greed and fear create sharp moves in both directions in the market.