While market gurus are divided on whether we are in the midst of a bear market or a correction in a bull market that began after the Covid-induced crash in March 2020, most experts believe the weakness may continue. before the Fed. result of Wednesday’s meeting.
If US inflation hitting a 40-year high of 8.6 percent last week wasn’t enough, China has started to reimpose Covid-19 restrictions once again, sending investors in Asia to seek refuge.
Ajay Srivastava, CEO of Dimensions Corporate Financial Services, said the sell-off was necessary as the Indian market remained too bullish despite all the global headwinds. “I think this is the first time we’ve seen a very widespread sale. It’s good for the market. Let the blood flow and let the weaker hands move, and then only the stronger hands will be left to hold on to the stock,” he said.
Monday chaos! Key factors behind the 1,500 Sensex point crash
On Monday, domestic stocks joined the global slide, sinking more than 2%, as data showed US inflation hit a new 40-year high in May at 8.6%, which it weakened the “peak inflation” narrative and opened the door for aggressive rate hikes from the Fed ahead.
VK Vijayakumar of said the short-term market trend is weak and such a scenario would be negative for risky assets like equities, particularly in the context of slowing global growth. “The Indian market will stabilize only when the US market stabilizes. So investors can wait and watch until clarity emerges,” he suggested.
Asutosh Mishra, Head of Research, Institutional Equity, Ashika Group, said the market correction can be used as a good opportunity for investors to rebalance their portfolios. “Focus on how in the past these deep corrections may have given us the opportunity to position ourselves for a profitable trade or investment. If we look around us, we will find many businesses whose prospects look good in these difficult times. Take advantage of this time to invest in the best companies in these sectors”.
Santosh Meena, Head of Research,
He said the drop is just a reality check, as most stock prices have strayed far from their fundamentals or intrinsic values.
Although he expects the markets to be volatile in the short term, he advocates buying the dip strategy.
Sameet Chavan, Chief Technical and Derivatives Analyst, Angel One, says trading stocks has become a nightmare in recent weeks. The pragmatic strategy, according to him, is to stay light in the positions.
(Disclaimer: The recommendations, suggestions, points of view and opinions given by the experts are their own. These do not represent the views of the Economic Times)