Know The Now – Has India Hit Peak Pessimism

V-shaped corrections are sharp, such as the Covid crash and rapid recovery. Meanwhile, U-shaped corrections grind in place for an extended period of time, bleed the optimism out of bulls, and investors often give up out of boredom and frustration. 

The reasons for the lackluster performance have been discussed ad nauseum – India lacks an AI story, regulatory and tax headwinds, FI selling, rising energy prices, lackluster earnings, weakening INR and on and on. However, important trends appear to be shifting.