‘Markets are being markets’: Deepak Shenoy says seems ‘like doomsday is here’

Founder of Capital Mind Deepak Shenoy said that the sharp correction in the stock market is giving a sense of an impending doomsday. The remarks comes as Nifty 50 declined over 3% from its peak in five trading sessions amid a notable surge in market volatility. Widespread selloff has been witnessed in the Indian stock market with experts attributing the uncertainty to ongoing Lok Sabha elections, muted Q4 earnings and outflow of foreign capital.

Stock market crash: The Bombay Stock Exchange (BSE) building in Mumbai, India.(Bloomberg)

Deepak Shenoy said in a post on X (formerly Twitter), “Markets are being markets. 3% off the top and it sounds like doomsday is here. It might well be, but I've hardly ever seen deep bear markets start when everyone thinks the end has come right at the beginning."

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The Indian stock market has seen a sharp bull rally as Nifty 50 jumped over 20% in the past one year and more than 36% in two years. But in the recent correction in the domestic equities, there is a sustained selling by foreign institutional investors (FII) as their total outflows exceeded ₹22,000 crore in May 2024.

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Earlier this week, ace investor Shankar Sharma also said that a threat was lurking beneath India’s bull market which is overcapitalization driven by the greed of merchant bankers and operators.

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“Single biggest threat to this Bull Market are greedy Merchant Bankers & Operators, exhorting foolish promoters to raise excess capital, permanently destroying balance sheets via over capitalisation. I repeat: These are the stocks that will fall 90% in the next Bear market," he wrote in a post on X.

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