Expert view: Market recovery may be closer than most people think, says Monarch Networth Capital CEO
AI Summary
Gaurav Bhandari, CEO of Monarch Networth Capital, expresses optimism about the Indian stock market, suggesting that a recovery is imminent despite recent declines. He emphasizes the importance of maintaining discipline through systematic investment plans (SIPs) and focusing on quality stocks with strong fundamentals, as the market corrects from overvaluation. With the Nifty trading below its historical median PE ratio, Bhandari believes that now is a strategic time for investors to rebalance their portfolios and stay committed to long-term strategies.
Expert view: Gaurav Bhandari, CEO of Monarch Networth Capital, is positive about the Indian stock market and believes that recovery may be closer than most people think. In an interview with Mint, Bhandari emphasised the importance of discipline and said investors must continue their SIPs without interruption. Edited excerpts:
The Nifty peaked at 26,373 on 5 January 2026 and currently trades near 24,000, a year-to-date (YTD) decline of over 8%. Over the past 12 months, the index has been down 4%.
So yes, the headline numbers have been disappointing for investors who entered at the peak. But let me offer a different lens.
The correction has been valuation-driven, not fundamentals-driven.
Corporate earnings for the Nifty 500 grew 15.6% in FY26. Banking sector NPAs are at a 15-year low.
India's GDP continues to grow at 6.5-7%. The underlying economy is doing precisely what it should be doing; the market simply got ahead of itself in September 2024 and January 2026 and has been correcting the excess.
From a valuation standpoint, the Nifty is now trading at approximately 20 times trailing PE, well below its 5-year median of 22 times.
The 52-week range of 22,182 to 26,373 tells you the story: we're closer to the bottom of the range than the top.
Historically, buying at these valuations has consistently delivered strong 12-18 month returns. The recovery, in my view, is closer than most people think.
What works, unfailingly, across every market cycle in history, is discipline. First, continue your SIPs without interruption.
SIPs are engineered for exactly these phases. Second, review your asset allocation. If equities have fallen and your allocation has dropped below your target, this is the time to rebalance.
Third, focus on quality. During bull markets, everything goes up. During corrections, only quality survives.
Stay with businesses that have strong and predictable cash flows, low or zero debt, high return on capital employed, and management with skin in the game. These businesses recover first and compound the hardest.
Frequent switching is one of the biggest destroyers of long-term wealth. And paradoxically, it's one of the most common behaviours among Indian retail investors.
I would recommend reviewing your portfolio once a quarter — and that too, not to make changes, but to assess whether your original thesis is intact.
Original Article
Published on Livemint