Market volatility is a recurring feature of equity investing and is likely to continue, according to Ramesh Damani, Member, BSE. Speaking to CNBC TV18, Damani advised investors to treat volatility as part of the cycle and focus on long-term participation rather than short-term moves. He recommended that investors stay invested, buy on dips and continue systematic investment plans (SIPs), noting that consistent investing tends to deliver better outcomes over time.
On foreign flows, Damani said the focus on overseas investment data may be overstated. According to the CNBC TV18 report, he pointed out that markets function with both buyers and sellers at any time, and price movements matter more than the source of funds. This perspective suggests that market dynamics are driven by supply and demand fundamentals rather than the nationality of investors.
Looking ahead, Damani said markets may stabilise as geopolitical risks ease. As reported by CNBC TV18, he noted that 'The worst years of the war are behind us now', adding that sectors linked to defence, infrastructure and local supply chains could see interest. He highlighted changes in global supply chains and the need for countries to reduce dependence on imports, suggesting that local production of raw materials and resources could gain importance.
Damani paid tribute to Mark Mobius, saying his work helped bring global investor attention to emerging markets, including India. According to the CNBC TV18 report, Damani said Mobius played a key role in shaping foreign investment flows over decades, noting that a large part of inflows into emerging markets came after global investors began tracking these markets more closely. He emphasized that 'There's a huge credit to him for opening up the minds of Western investors' in building interest in markets such as India.
Sharing a key lesson from Mobius, Damani said volatility should be seen as part of investing. As reported by CNBC TV18, he emphasized that 'Don't be scared of volatility. Volatility means opportunity', adding that market corrections often create entry points for long-term investors. This philosophy aligns with Mobius' view that volatility creates opportunity for patient investors to build positions in quality companies at attractive valuations.
