Nifty 50 is expected to decline another 10%, according to Marcellus Investment’s Saurabh Mukherjea.
The founder and chief executive officer of Marcellus Investment Managers, Saurabh Mukherjea, has stated that the Indian equity markets

The founder and chief executive officer of Marcellus Investment Managers, Saurabh Mukherjea, has stated that the Indian equity markets
The founder and chief executive officer of Marcellus Investment Managers, Saurabh Mukherjea, has stated that the Indian equity markets are presently experiencing a cyclical decline. For the Nifty 50 to be fairly valued, he anticipates another 10% correction.
Mukherjea is more worried about the “pockets of froth” that have developed in the small and mid-cap space, given that the number of retail investors in India has quadrupled in the past four years.
Currently, he suggests that Indian investors diversify their holdings by investing in the North American market. According to him, the two best-performing markets, North America and India, have very little in common.
He mentioned that a diversified portfolio provides better risk management and emphasized that, given the current state of the Indian market, diversifying makes sense both from a valuation and currency depreciation standpoint. “In the next two years, you may need to adjust your strategy,” he added.
At present, Nifty’s forward price-to-earnings ratio stands at approximately 22. He believes a PE ratio of 18 is a more suitable target for long-term investments in India. “When considering valuations, it makes sense to look for opportunities in Western markets, particularly in small and mid-cap stocks that are priced attractively. Moreover, if the rupee depreciates, you could see additional gains,” he added.
He stated that the ongoing decline is cyclical rather than a result of systemic issues. “After Covid, we experienced three strong years with the economy performing well and earnings growth of nearly 20% each year,” he explained.
There is nothing alarming about that, though, because a free market economy experiences fluctuations. “We are about to enter a multi-quarter cyclical downturn, so the valuation should reflect that,” he said.
Nifty has performed in the mid- to high teens and is not significantly overpriced, excluding the Covid dip. We should be able to avoid valuation territory with just another 10 to 15 percent on the Nifty, Mukherjea stated.
He believes that the network of contractors that provide to road, railroad, and defense constructors is greatly overpriced in small and mid-cap stocks.
The National Consumer Rights Commission, New Delhi, Working Women’s Council Kashmir,
Entrepreneur Anand Mahindra shared an inspiring post on social media about
Lovely Professional University (LPU) recently hosted the Startup Ecosystem Enablers Meet,