It could be time to ponder a 'one foot out of the door' plan
investors are finding themselves on the horns of a dilemma these days: Is it worth the risk to continue with winning equity bets into the fourth year of the bull run when share valuations are at a peak? Or is the risk of staying out of the bull market greater when just a few are talking about a possible reversal in the market? While the urge to be ahead of the curve in determining market tops is strong, the overwhelming desire to make the most out of bull rallies overrides any cold logic.
This is wholly understandable. The bullish sentiment on Dalal Street at the start of 2024 is fervent.
The 'this time is different' narrative is as strong as it can get with the Indian economy seemingly better placed than various regional peers, domestic political uncertainty waning, foreign investors pumping money into India, and retail investors upping their stakes in stocks, directly and through mutual funds.
So, is it really different this time? Like beauty, this depends on the beholder. Several domestic investors are going through one of the best phases in the stock market in recent years with manyfold returns.
In their eyes, the bull run in Indian equities is still in its nascent stages and just starting to play out, given the growth prospects of the economy. With domestic-centric industries leading the upmove in the recent bull wave, investors have little reason to be pessimistic about India and park their money in overnight instruments.
These market participants may have a reason to believe this time seems to be different.
For foreign investors investing in various global markets, the current situation may not be very different. While the overweight stance on Indian equities in recent times has worked well for their
