Shankar Sharma compares the Indian stock market to Rajesh Khanna and the Chinese stock market to Amitabh Bachchan. That’s why

The Indian stock market crashed on Monday, with major indices Sensex and Nifty 50 fell more than 1.5% each amid widespread selling pressure. The market’s decline marks a significant correction of over 9% from its all-time highs, driven by persistent outflow of foreign institutional investors (FII).

The trend is fueled by expectations of another stimulus package from China, which will prompt funds to shift from India to China, while FIIs are also looking to book profits ahead of the upcoming US elections.

Against this background, a first-class investor Shankar Sharma drew a powerful analogy to the golden era of Bollywood, comparing the recent sluggishness of the Indian stock market to the once unrivaled career of superstar Rajesh Khanna, who was challenged by a rising star.

In a post on microblogging platform X (formerly Twitter), Sharma wrote about the performance of the Indian stock market, drawing a parallel between the Indian market and Khanna’s golden period between 1970 and 1973, a time when the actor delivered an unprecedented 14 super hits in a row. .

“The problem with the Indian stock market is that the last three years have been like Rajesh Khanna between ’70 and ’73: 14 super hits in a row. Undisputed. Then came UP ka bhaiya, a classic 4 am bet: & ‘Namak Haram’ suddenly turned it into a two-race race. China” Sharma wrote.

According to Sharma, once Khanna’s dominance was challenged by a newcomer, Indian stock marketThe company’s stellar success over the past three years now faces stiff competition. Enter “UP ka bhaiya”, a metaphorical reference to China that Sharma equates to the classic 4am bet – a high-risk, high-reward game.

Much like Amitabh Bachchan’s sudden rise to fame with the 1973 blockbuster Namak Haram, China’s influence on global markets has turned what was once a one-horse race into a two-horse race.

China’s growing dominance

The comparatively low valuations of the Chinese market coupled with incentive measures aimed at supporting Asia’s largest economy, have attracted investors, attracting significant foreign capital to Chinese markets. Sharma’s analogy suggests that India’s undeniable economic growth is now being tested by China’s resurgence and its ability to attract global capital, possibly diverting attention from the Indian stock market.

This metaphor highlights the complexity of market dynamics, illustrating how external forces, like new actors in Bollywood, can change the narrative. While the Indian stock market has seen a meteoric rise, Sharma’s comment hints at a phase of introspection and recalibration as it faces new challenges on the global stage.

Disclaimer: The opinions and recommendations expressed above are those of the individual analysts or brokerage firms and not of Mint. We advise investors to consult with certified experts before making any investment decisions.