Sandeep Tandon sees signs of market bottoming out. Explains how dollar, crude, gold favor India

Market expert and Quant Mutual Fund’s CIO Sandeep Tandon advised investors to stay mentally resilient as markets undergo a correction, emphasizing that market cycles demand patience and perspective ash e acknowledged that after four years of extraordinary returns from 2020 to 2024, investor expectations had soared, making the current 15-20% correction feel more painful than usual.

However, he reassured that such pullbacks are a natural part of both structural and cyclical bull runs and that the market is showing signs of bottoming out.

In an interaction with ETNow, Tandon explained that “the biggest risk was the expectation risk”, citing how investors had grown accustomed to sustained outperformance. As a result, the current 15-20% corrections appear harsher than they actually are.


He also pointed out that market sentiment has shifted from a "buy on dip" strategy to a "sell on rise" approach, leading to heightened caution among investors. However, he suggested that the broader market, including NSE and BSE 500, is showing signs of bottoming out, stating that "nobody has bought exactly at the bottom and nobody has sold exactly at the peak. So, time has come to nibble into it and see."

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Tandon, in his conversation, also highlighted the macroeconomic factors that could benefit Indian investors. He pointed to the dollar index (DXY) falling below the 106 mark, which is a positive development for emerging markets, including India.

"For us, the biggest good news is that DXY has also broken the 106 mark, which means this is a very positive construct for the emerging market," he said.

Additionally, he noted that weak crude oil prices are advantageous for India as a net importer, and gold prices remain strong, which supports the wealth effect and investor confidence.

Despite global uncertainties, Tandon remains cautiously optimistic and sees selective buying opportunities, even in small caps. He reassured investors that the situation is not as negative as it seems, stating, "I do not think we are negative up to that extent the way people have given up." Rather than being overly stressed about global market volatility, he recommends looking for participation opportunities as the market stabilizes.

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