Multi-Year Bull Market For India On Horizon, Says CMT Mathew Verdouw

Green shoots indicating a multi-year bull run in Indian equity markets are becoming apparent despite the prevalent adversities, according to market expert Mathew Verdouw.

"We are talking about a multi-year bull market leading into 2026-27," Verdouw, a chartered market technician and founder of market analysis platform Optuma, told BQ Prime’s Niraj Shah.

"Obviously, there are a lot of external influences. The situation in Ukraine, the situation with inflation, all of these things need to come under control. We are seeing those signs. When we look at the Nifty, (compared to) when we look at some of the other international markets, we’re seeing multiple up-weeks,” Verdouw said.

According to him, Indian markets have not fallen as much as most other international markets.

The Nifty reclaimed 18,000 levels earlier this week. Bloomberg analysts expect the gauge to reach 20,272.77 within 12 months, with return potential of 12.3%.

India’s stability will bring in more foreign investors to domestic shores, even as other emerging markets manage to catch up, he said.

“We are in an environment where, as much as there is a hunt for yield, there is also a requirement for being risk-adverse. When you look, particularly in this early phase of emerging market growth, India is still going to be the best performer because it’s such a stable economy, stable currency.”

There are other markets that have fallen more and the volatility there could be attractive, he said. "But the risk profile will be the determining factor on how much money is invested in those versus India,” he said.

According to him, investors looking to increase their exposure to foreign markets will bet on a “double-whammy yield jump” with the U.S. dollar peaking and Indian markets growing.

Emerging markets will be the vehicle of choice for foreign institutional investors as they are less risky for them, Verdouw said.

“It’s something liquid—they can get in, they can get out quickly—and that’s the way they would gain their foreign exposure. There are going to be others that are looking for direct investment… We will see, especially for U.S. fund managers, etc., they are going to look for these opportunities,” he said.