'The Stock Markets will Experience one more Sharp Drop, but it will be the Last.'

The Indian Equity Markets have seen their fair share of volatility in recent months. However, according to this equity market expert, the worst is not yet over. It may take another steep fall, but it may be the last in the near future.

“Amid the volatility, few sectors like FMCG, auto have already corrected since they can pass on rate hikes to customers. So stocks of these companies are now moving up. Broader view is we may see one more fall in the market which may be the last,” Shrikant Chouhan, head of equity research (retail) at Kotak Securities..

Covid 19 and the Russia-Ukraine war exacerbated global supply chain disruptions, raising global inflation levels. Annual inflation in the United States is at a 41-year high, while inflation in the United Kingdom is at a 40-year high.

Retail inflation in India rose to 7.79 percent, well above the RBI's inflation target of 4 percent. So far in 2022, the Indian benchmark index Sensex has fallen around 8%, which is three times less than the 26 percent drop in US markets, making Indian markets one of the best performing equity markets in the world.