Rumble Stripes – November 2024

Short-term swings, long-term wins

Temporary Headwinds

• Growing global uncertainty
• Subdued earnings in sight
• Geopolitical shift
• Foreign flows redirecting towards China
• Consistent outflows by FPIs
• Elevated valuations compared to emerging markets and long-term averages

Outlook: Near Term

• Volatile but promising – a prime buying opportunity.

Outlook: Long Term

• India is positioned at a transformative stage, with sustained high valuations likely.
• Strong structural and economic fundamentals place the country among the most attractive markets globally over the long term.

Is a 6% monthly decline concerning? Ride out the lows, win the year

Historically, such significant monthly dips have often proven beneficial for investors over the long term

• In October, the market saw a 6% decline, sparking caution among investors.
• Historically, buying during such dips has proven rewarding, with strong long-term returns and impressive growth rates evident from past recoveries.

Source: ACE MF, Fisdom Research.

Even with larger drawdowns investors can achieve long-term gain