This bear market is not like 2008, says Samir Arora

Critiquing those that compare the current bear market conditions to that seen in the financial crisis of 2008, market expert and founder of Helios Capital, Samir Arora, shunned the idea for any such comparison.

Arora explained that the current downturn is primarily a valuation-driven correction affecting a select group of companies, without causing fundamental damage to the real economy. In contrast, the 2008 crisis was marked by excessive and wasteful investments, job losses, property price crashes, forced deleveraging, and rising NPAs, making it a far more severe economic downturn.

In a post on X (formerly Twitter), Arora concluded that due to these fundamental differences, the current market phase will take time to stabilise before recovery begins.

Despite Indian markets falling up to 20 percent from record highs, unsettling investors, historical data also aligns with Arora's view and shows that this correction is far from the most severe in the past three decades. Economic downturns, political instability, and global financial crises have, at times, erased over 50 percent of market valuations, proving that Indian markets have weathered far greater turmoil.