Indian Market In Valuation Reset Phase: SEBI Analyst Says ‘The Next Bull Run Is Already Being Built’

Indian equities have spent the past year consolidating after an extended rally, with the Nifty 50 hovering about 5% below its record highs. 

The correction has been gradual rather than steep, marking a period of valuation reset as markets digest past gains. 

Patience Over Timing

SEBI-registered analyst Front Wave Research described this phase as a cleansing period where discipline and patience matter more than short-term timing. “Bear markets transfer wealth from the impatient to the patient,” the firm noted, adding that every market downturn plants the seeds of the next uptrend.

The firm said investors should focus on businesses showing visible volume growth, improving return on equity (ROE) trends above 15% over the next two years, and increasing asset turnover ratios.

Smart Money’s Playbook

According to Front Wave, catching exact bottoms is luck — but accumulating conviction ideas systematically near valuation comfort zones is skill. It advised investors to “accumulate, don’t chase,” and to stay invested in high-quality companies even during consolidation phases.

The firm also suggested holding 10–20% in cash equivalents to stay flexible when market leadership shifts, adding that optionality is an advantage during uncertain times.

Early Signs Of A Turn

Front Wave outlined several cues to watch for a broader reversal: a pickup in volume-led growth commentary from companies, foreign institutional investors turning net buyers, stocks reclaiming their 200-day moving averages, and the domestic capex cycle nearing completion.

“These are not random signals — they precede confidence,” the firm said, suggesting that such signs historically appear just before a new uptrend begins.

Front Wave’s Core Bets

Front Wave said it remains optimistic about its open ideas — Titagarh Rail Systems, Steel Strips Wheels Ltd (SSWL), Apollo Hospitals, and Shyam Metalics — calling them structural compounders poised to lead as the market cycle turns.

The Bottom Line

According to Front Wave, this is not a phase to retreat but to rebuild conviction. “The market has absorbed its excesses,” the firm said. “Now comes the earnings revival phase, where patient investors ride volume growth back into momentum.”

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