The conviction test begins.

“Great expectations” – that is how we would sum up the market mood so far in 2015. Being upbeat has led to a more positive response to investment opportunities. We see the data on domestic investor activity at its best. Equity is no more the bad word in investment lexicon. Most investors have seen their belief in equity rise even faster than the fundamentals of the Indian economy. This makes one wonder if investors have finally come of age. Is short term under-performance something investors are ready to deal with? Will the lack of positive returns in one year not bother investors anymore? A correction will validate some of these beliefs and give the right sense of how far investors have changed and prepared themselves for the long term. The time for such validation seems near.

There is no better time to buy stocks than a fire-sale.