Market correction offering long-term investors a golden opportunity: Manish Chokhani
«I remember all of us from the markets were in this very famous now, Jaipur Jamboree in December and the mood was also quite unanimous over there that the markets have run far ahead of themselves,» says Manish Chokhani, Director, Enam Holdings.
The markets have taken a nasty knock. Everybody knew that this was coming. It is just that when it hit us, nobody was prepared for it.
Manish Chokhani: Yes, it is true. Even I never thought that we have a bubble in the market, because the largecaps actually had not really participated. And the bubble we used to always talk of was occurring in the smallcaps and the SME type IPOs and that is where the pain has obviously been the maximum and earnings have dramatically slowed down.
So, you keep everything aside, keep what is happening in US, keep everything happening in China, if our earnings had held up, we could have dealt with all of this. The reality of life is our earnings are not yet holding up and therefore, one has to go through this period of readjustment.
The bigger question on everyone's mind is how much more pain and especially for the janta who has come in into the markets post COVID, they have not really seen this kind of a gut-wrenching fall.
Manish Chokhani: Well, everyone, including me, has been saying for a while that we have to get our earning expectations aligned. That if the return on equity of India Inc, by and large, has been 15%, and that has typically been the returns that the index has given over 20 years, 10 years, whatever, you cannot be making
