Amid global equity market turbulence triggered by geopolitical tensions and tariff concerns, veteran investor Madhu Kela has stepped in to reassure Indian investors that the current correction is temporary and not a threat to the long-term survival or structural integrity of the Indian economy.

Speaking at an investor conference organised by Singularity AMC, a Mumbai-based investment firm he backs, Kela offered a nuanced and confident take on the ongoing market correction while reinforcing his bullish stance on India’s economic prospects.

Current Market Turmoil is Temporary, Not Structural

According to Kela, despite the pain many investors are feeling today, this period should be viewed as a "transition phase" rather than a systemic crisis. He said, “This is a very painful period from an investor perspective, but it is a transition period or temporary phase and hopefully India will emerge a winner.”

He added that volatility is often misunderstood as risk, but in fact, it can be a friend to investors who are prepared. “History has shown that the fall is never permanent. We believe that it is more about volatility than real risk for investors,” he said.

Risk vs. Volatility: Key Investment Insight

Kela stressed that investors must differentiate between real risk and market volatility. In his words:

“When it comes to investing, there are two key things - risk and volatility. Investors need to see whether the developments in the market are real risk or volatility.”

This distinction is vital, he believes, because volatility offers opportunities for value investors to accumulate quality stocks at discounted prices. Kela explained that volatility can be a blessing if leveraged wisely, while real risk requires a more defensive posture.

India’s Unique Strengths Among Emerging Markets

Backing India’s resilience, Kela highlighted the sheer depth and diversity of India's listed companies, which is uncommon in other emerging markets.

“We have more than 1500 companies with more than Rs 1000 crore market cap. In no other emerging market, you can see this kind of variety.”

He also credited India’s entrepreneurial spirit for driving long-term growth and adapting well during challenging periods. According to him, Indian entrepreneurs are not afraid of taking risks, and this boldness contributes significantly to India's sustained economic growth.

India's Structural Story Remains Intact

Kela is optimistic that India will emerge stronger from this global market correction. He reminded investors that India's growth story is rooted in its entrepreneurial ecosystem, demographic strength, and market breadth.

He said,

“Indian markets are superbly resilient as there is a growth story. The most important advantage of India is its entrepreneurship.”

His confidence lies in the deep foundations of the Indian economy, which he believes are not affected by short-term external shocks like tariff actions or global volatility.

Warning Against Tip-Based Investing

In his interaction, Kela also warned investors against making decisions based on stock market tips, especially in uncertain times.

“Investing on the basis of tips is never a good idea. Investors should be very watchful about how they are investing.”

He emphasised the need for a disciplined, research-backed investment approach rather than falling prey to market noise and rumours.

The Psychology of Investing: Greed vs Fear

Touching on one of the most crucial behavioural aspects of investing, Kela reminded investors of the timeless principle:

“You have to be greedy when other people are fearful and fearful when other people are greedy.”

He acknowledged that this is easier said than done, but highlighted that recognising these behavioural patterns is key to long-term wealth creation.

Singularity AMC and Family Involvement

The platform for these remarks, Singularity AMC, is a relatively new but promising investment firm based in Mumbai. It is backed by Madhu Kela and led by his nephew Yash Kela. The firm represents a continuation of Kela's investment philosophy and commitment to value-driven investing.

Conclusion: Stay Invested, Stay Rational

To summarise Madhu Kela's views:

• The current market correction is painful but temporary.

• It presents a golden opportunity for long-term investors who understand the difference between volatility and risk.

• India's economic fundamentals are sound, and the market remains one of the best in the emerging world.

• Emotional investing based on tips or panic-selling must be avoided.

• Investors should look at volatility as a friend rather than an enemy.

In times like these, it's worth revisiting the basics of investing and listening to voices like Kela’s, who have seen multiple cycles and understand that wealth is built with patience, courage, and perspective.

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