Market Dip: Sentiment, Not Fundamentals, Driving India's Sell-Off, Says Bajaj Finserv AMC CIO

• Indian equities saw their sharpest weekly decline in four months, with investor wealth eroding by over ₹15 lakh crore.
• Nimesh Chandan of Bajaj Finserv AMC believes the market correction is sentiment-driven, not due to fundamental deterioration.
• India's economic cycle is strong with improving business, profit cycles, and supportive credit, but sentiment is lagging.
• Chandan downplays the India-US trade deal delay, stating its economic impact is overstated; eyes India-Europe deal as a major positive.
• Bajaj Finserv AMC is positive on telecom due to improving industry structure and potential tariff hikes, cautious on IT due to weak growth visibility.

Why It Matters: Despite recent market volatility, India's economic fundamentals remain strong; a sentiment shift could trigger a sharp rally.