This is a market correction, not bear market, says Envision's Nilesh Shah

Nilesh Shah, Managing Director and CEO of Envision Capital.

The ongoing market rout have fired up discussions of the Indian equity markets being trapped in a bear market, however,  Nilesh Shah, Managing Director and CEO of Envision Capital differs. In an interaction with CNBC-TV18, Shah downplayed the idea that the recent sell-off indicates a bear market. “This is a correction, not a bear market. Indian markets do not have strong reasons to enter a bear zone,” he said. Historically, corrections of 15-20 percent have been common even during bull markets.

He stated that while many investors may feel jittery seeing such pullbacks, these moments often present buying opportunities. “A few quarters down the line, we might look back at this correction and recognize what a great opportunity it was,” he added.

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For example, Shah believes correction in digital platform stocks has created compelling investment opportunities. Companies such as Paytm, Zomato, Swiggy, and PB Fintech have fallen between 30 percent and 44 percent, yet Shah remains confident in their long-term growth potential. “Digital is the way forward, and over the next three to five years, digital platform companies will continue to grow at double-digit rates,” he said.

While some concerns exist around regulatory challenges and competitive pressures, Shah noted that these companies remain largely insulated from external risks such as tariffs and dollar fluctuations. He believes the composition of indices like the Sensex and Nifty will change over the next five to seven years, with more digital companies entering the mix.

Apart from that, Shah also sees potential in niche consumer product companies, particularly in the alcoholic beverages (Alcobev) and beauty and personal care segments. He expects resilient consumption trends, aided by government initiatives and direct benefit transfers, to support growth in these sectors.

Also Read | More downside in large cap IT stocks, but mid and small cap counterparts hold promise, says Envision's Nilesh Shah

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