what is seen as an exciting journey of Sensex Moving to the 50,000 to 60,000 milestone in less than a year at its fastest pace, the benchmark index has begun to hit the 1 lakh mark soon amid hopes of a continuation of the current bull market rally.
However, with the bigger prediction comes a word of caution as stock market experts see a possibility of a short-term correction in a few months as market euphoria has pushed valuations to a much higher level.
“At such valuations, income distribution becomes important,” said Gautam Duggad, head of research, Motilal Oswal Financial Services Ltd. I would suggest investors to be cautious on small and mid caps now.
A roaring bull run continues in the Indian market with all walls of worry climbing, though experts predict that global indices like Dow Jones and DAX are nearing their critical resistance and a correction may take place from here.
“We are in a classical bull market like the 2003-2007 phase where this bull run is likely to continue for the next 2-3 years, although I would caution after a parabolic move over the past few days as short-term corrections could be made. Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “This cannot be ruled out in the coming days.
Meena believes we are witnessing a strong uptrend and outperforming global markets, while some average reversal may be seen in the coming days, where rise in crude oil prices and rise in US bond yields are near. may cause instability over the period.
“Since the overall outlook is bullish and Sensex may move towards 100000 mark in this bull run, hence, investors are advised to stay invested, where any 10-20% correction will be a great buying opportunity. SIP is the best way to run the current bull run,” said Meena.
Shares are headed for a fifth consecutive weekly gain, with a sharp rally showing the impact of withdrawal from FPIs and local investors, who continue to invest despite repeated adversity.
HDFC MD & CEO Dheeraj Reilly said, “The lack of 10% correction in the indices over the last 18 months reflects the maturity of local investors, but also raises the possibility of the same happening in the next few weeks/months.” securities.
Amid buoyant sentiment and increased activity, valuations have spiked higher and demand a consistent distribution over earnings expectations.
Motilal Oswal, MD & CEO, Motilal Oswal Financial Services Ltd. said, “Given the rich valuations, one cannot ignore the intermittent volatility – although we are looking forward to improving economic activity and improving corporate earnings. Hope the positive momentum continues.”
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