It's a painful period but not a risk for long-term survival of India: Madhu Kela on market correction

“Investing ultimately is all about greed and fear cycle but it is easier said than done. You have to be greedy when other people are fearful and you have to be fearful when other people are greedy,” says Madhu Kela

Indian markets may well be reeling under pressure due to the ongoing turmoil in global equity markets following Trump tariff actions but market veteran Madhusudan Kela believes that the current situation is not a risk for the long-term survival of India.

The market veteran is in fact quite bullish on the India story and believes that the Indian stock market is quite resilient and offers a kind of variety to investors that hardly any other emerging market offers.

“We don't think the current situation is a risk for the long term survival of India. Yes, this is a very painful period from an investor perspective, but it is a transition period or temporary phase and hopefully India will emerge a winner. History has shown that the fall is never permanent and we believe that it is more about volatility than real risk for investors,” he said while interacting with media on the sidelines of an investor conference by Singularity AMC.

Singularity AMC is a Mumbai-based investment firm, backed by Madhu Kela and led by his nephew Yash Kela.

From an investment perspective, he says that investors should keep in mind the two key factors – risk and volatility – of investing and not be fearful.

“When it comes to investing there are two key things - risk and volatility. Investors need to see whether the developments in the market are real risk or volatility. If it is only volatility, then it is the best friend of an investor. Because in volatility, he could get shares at fraction of earlier price. But, if it's risk then it's a different thing,” he says.

He believes that currently a lot of people are fearful and the common psyche is that when people are fearful they become all the more fearful but one should remember that no other emerging market offers the kind of variety that India offers.

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“Indian markets are superbly resilient as there is a growth story. The most important advantage of India is its entrepreneurship. They are not afraid of taking any risks or any downhill in their journey. That is what India is about. We have more than 1500 companies with more than Rs 1000 crore market cap. In no other emerging market, you can see this kind of variety. I'm very bullish on the India story,” he explains.

He also cautioned investors against investing on the basis of tips especially in the current scenario.

“Investing on the basis of tips is never a good idea. Investors should be very watchful about how they are investing,” he said.

“Investing ultimately is all about greed and fear cycle but it is easier said than done. You have to be greedy when other people are fearful and you have to be fearful when other people are greedy,” he added.