Equities can stay disconnected from economy in short run, so don’t be too negative: Gurmeet Chadha

Gurmeet Chadha, Managing Partner and CIO at Complete Circle Consultants, has advised investors not to be negative on the stock markets, as they have the tendency to keep humbling people. As the year comes to a close, his major learning from the past 18 months is that equity markets can remain disconnected from the economy in the short term.

"Markets keep humbling u. a major learning in the last 18 months is that equity markets can remain disconnected with the economy in the short term. Last year, when the economy was weak, eps growth was flat, markets made a high. Now, when economic momentum is picking up, reforms are happening markets r correcting. But eventually, over 5-year block, markets reflect economic growth. Don’t be too negative on Markets," Chadha said.

As 2025 comes to a close, market trends reflect a mixed year with Nifty just about latching onto double-digit growth as of today.


The markets remained buoyed on Friday following four consecutive sessions of decline. They hit the day's high of 25,993.35, rising by 178 points or 0.7% intraday. Sectorally, auto, energy and financials kept sentiment positive.

The year began on a tough note with Nifty falling 0.6% in January and 5.9% in February. They ended with positive returns on a month-on-month basis over the next four months, ended June 30. The highest return of 6.3% came in March. July and August saw Nifty correcting by 2.9% and 1.4%, respectively. The period between September and November also brought gains for the Indian heartbeat index with Nifty scaling a fresh lifetime high of 26,325.80 after a 14-month-long gap. However, December has proved to be a lackluster month with sideways trade. Nifty is down on a month-to-date basis, according to Trendlyne data.

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With seven more sessions to go, it remains to be seen if Nifty maintains the lead and ends above the previous year's gain of 9%.

Chadha remains bullish on Indian markets and has come out in their support on previous occasions too.

He previously defended the IT sector following backlash due to its long underperformance. The Nifty IT index is down nearly 15% over 12 months. But in the last three months, the sector has seen a strong turnaround with gains of 6.1%, 4.7% and 3% in September, October and December MTD, respectively.

He slammed analysts who, in his view, were abusing top IT companies. Indian IT stocks could be down amid current headwinds, but the companies are a backbone to the domestic economy, generating millions of jobs, foreign exchange reserves, while building a tech ecosystem, Chadha had said in a tweet in October. He said that the "analysts" should analyse, sell or trim their holdings in IT stocks and refrain from "abuses".

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(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)