The boom in the stock market is over, Nifty will not give returns for the next 5 years – claims a veteran investor

At this time, the stock market is giving nothing but disappointment to the investors. Meanwhile, veteran investor Shankar Sharma has also given a warning about the Indian stock market. During a program organized in Mumbai, Shankar Sharma said that Nifty 50 will not give any return for the next four-five years. Its no return has started from September 2024.

The founder of GKC said, “The market will keep your interest for the next 5 years.” He further said that the real bear market has come in the Indian stock market, especially in the small-cap segment.

Nifty will not give return for the next 5 years

Shankar Sharma told that the phase of bull run is ending in the Indian stock market. He said, “The bull market is in its fifth year and everything has a time limit. In the Indian market, this limit is 5 years. If the bull has run very fast, like it was seen in our small-cap stocks, it means that it is getting tired and can now fall even with minor shocks. That’s why I was very bullish for four and a half years.”

Told the market condition with Lake Return Theory

Shankar Sharma used the ‘Lake Return Theory’ to explain the returns of the Indian stock market. He said, “Every asset class has a limited capacity. In the Indian sea i.e. the market here, it is limited to 10-12% annual return. After Covid, this figure had suddenly increased, as if a dam had broken. Now this sea water is slowly decreasing.”

Is the real recession only in India?

If Shankar Sharma is to be believed, “The real bear market is only in India.” Large cap stocks do not fall 50%, they slow down. This struggle is going to be different. But this decline will continue slowly and their valuation will come to a reasonable level.