Sensex's 80K milestone a journey, not destination: Nilesh Shah of Kotak Mahindra AMC
Investors are advised to maintain asset allocation discipline and a long-term investment strategy to navigate market volatility effectively.
's 80,000 milestone is a continuous drive rather than a final destination which includes both forward progress and occasional setbacks, says Dalal Street veteran , while warning investors that took 17 years to return to its previous peak.“Sensex milestones are a journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak. Invest in the market as per your , have a long-term horizon, significantly moderate your return expectations and follow the dharma of ,” said Nilesh Shah.
Shah’s caution arises from the fall of the Nasdaq index, which includes a wide array of technology and internet-based companies in the US, when it reached a peak in March 2000, driven by the . However, the bubble burst, leading to a significant and a prolonged downturn.
Nasdaq lost nearly 78% of its value, plummeting from its peak in March 2000 to its low in October 2002. After nearly 17 years, the Nasdaq finally reached and surpassed its previous peak, achieving new highs, driven by the growth of major , including Apple, Amazon, and Google.
Sixteen years ago, the Sensex stood at 8,800 on the day when Lehman, the leading bank in the US markets, crashed. The index has given nine times returns since then.
Even four years ago, during the time of Covid, the index was at 26,000. It has tripled since Covid, which gives confidence that equity markets did perform well in the long run, however, one needs patience and confidence while investing and even after it.
Based on the current domestic macros, analysts advise to continue investing systematically in equities with a long term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
