After witnessing an unprecedented rally from last year, equity markets witnessed a correction from all-time highs of October 2021. BSE Sensex It is down over 3,000 points in a month, from its all-time high of over 61,500 to currently hovering around the 58,500 level.
However, despite the recent correction, the Indian stock market has been one of the best performing markets this calendar year as compared to its global counterparts.
Brokerage and research firm ICICI Securities remains optimistic on the Indian equity market in general, and believes the structural rally will continue amid a period of minor corrections and consolidation. Historically, the markets have seen a correction of 10-15% almost every year.
“The recent correction was overdue and should be considered as healthy in the overall major uptrend. It is difficult and virtually a futile exercise to predict whether the market will further correct or recover from the current levels. In general, 5% There is enough “dip” to follow the correction timing and test the “buy on dips” allocation strategy. Hence investors can allocate some lump sum amount at current levels in addition to their regular SIPs.
Moreover, India has been a favorite destination for foreign investors, with the improving market sentiment touching an all-time high and brokerage house ICICI Securities believes the same will continue.
“Structurally, our outlook is stable on Indian equities. However, the equity rally is showing some signs of exhaustion in the near term. The market is definitely taking a break and the correction could extend to another 5%. In a broader perspective, we reiterate our bullish stance with our positive argument. We see Nifty at a much higher level during 2022 than in 2021,” said Amar Ambani, Head – Institutional Equities, Yes Securities.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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