Markets On The Boil? Ask Buffett

Before the Covid-19 pandemic struck India, and took it by a storm, the domestic equity markets were doing quite well, even though there were some concerns surrounding an economic slowdown The Nifty traded in the range of 12,000s and market experts forecast it to hit 14,400 by the year-end. In fact, that was among the most aggressive forecasts. And when the pandemic hit, the NSE benchmark crashed to around 8,000 points in a matter of weeks. It was natural, given that the next few months saw India’s quarterly GDP crash from around Rs 38.3 lakh crore in the fourth quarter of 2020-21 to around Rs 27 lakh crore in the first quarter of 2021-22. So, a knee-jerk reaction from investors did not seem too irrational. However, since then, the equity markets made a remarkable recovery not only reaching their pre-Covid highs, but also surpassing them significantly. The Nifty traded near 17,000...