The unlisted space now has a market cap of $500-600 billion, more companies are being funded, and the ecosystem is expanding rapidly. Market corrections are not likely in the near future. According to Gautam Trivedi, co-founder and managing partner at Nepean Capital, any correction in India will be driven by US or global factors rather than anything specific to India.
I completely agree with you. The truth is that I receive calls almost every week asking if this is the week when we will see a correction. This has been going on for the past three months. The macro picture and what is causing the bull market to continue upwards are more important than predicting when and if this will occur.
As a country, we’ve witnessed a number of game-changing events. People are now making their own investment decisions, thanks to four-year-old mobile technology, smartphones, and discount brokerages.
Of course, there’s also the option of working from home and e-KYC. As a result of all of these factors, the bull market has continued to rise. Many millennials and younger investors in this market have never witnessed a market cycle in action. As a result, when the correction is implemented, there will be disappointment.
The real question is how severe the correction will be, assuming it occurs at all. In terms of fund flows, the United States, where it all began, is showing no signs of slowing.
The Foreign Direct Investment
According to a report by Bulge Bracket Investment Bank, the US received a record $900 billion in foreign direct investment (FDI) in the first half of this calendar year. Investors from other countries are putting money into India. We brought in $7.6 billion in the first six months of this year, but that’s a record $900 billion going to the United States. I’m sure the Nasdaq or the US market in general is attracting a lot of money from India. This means that I don’t expect any significant corrections in the near future. The United States or global factors will lead India’s correction; I don’t see anything specific to India.
Because EVs require so many more semiconductors than traditional cars, even some of the electric vehicle manufacturers here have to wait six to eight months to get a car because EVs require so many more semiconductors. Two-wheelers are becoming more popular than automobiles.