Budget 2025: India story can’t be over by 10-15% market correction; this Budget looking at capex & fiscal path beyond 2026: Madhu Kela
Madhu Kela, Market Veteran, says turn market volatility into your ally. This year, returns are expected to be quite modest. To achieve those returns, you need to be highly skilled at spotting strong bottom-up investment ideas. Volatility can provide you with an advantage and opportunities, as stocks often don’t have time to recover. Many solid companies can see their prices drop by 40% or 50% in just a few trading sessions or within a month.
Kela says in a bull market, one can make money even if you are not on the ball, which was the case for the last three years. In this kind of market, one has to be really on top of the game to be able to make money. This Budget, he will be looking at the commentary on the fiscal path beyond 2026 and the capex situation.
What is the state of the market and what sort of return can be expected?
Madhu Kela: In the last three-four years, phenomenal returns have been generated by individual investors and markets have been very kind. One thing which I have been consistently maintaining is not to extrapolate these returns even in your mind because you cannot just keep compounding at 30-35% year after year.
So, given that as a background, please expect returns to moderate in this coming year and that is exactly what we have seen that in the month of January, which according to me was very painful, and the number of people I am interacting with and specifically the retail crowd which came in and was really leading the market, those people would have really got hurt in January because it
