InvestorQ : With Sensex at 40,000 and Nifty at 12,000 can I expect a correction in the market?
Archita Jajjoo made post

With Sensex at 40,000 and Nifty at 12,000 can I expect a correction in the market?

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Rashi Mehra answered.
1 year ago
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Corrections can come at any point of time and that is not really important. The more important thing here is that this represents a confidence and sense of assurance that the market is demonstrating with respect to the new government and more specifically the new set of ministers who have been sworn in. The Nifty and the Sensex crossing these psychological levels is a sign of this confidence. Also, there are other reasons why the market is excited. The oil prices in the Brent Crude market have fallen sharply to about $66/bbl. That reduces India’s import cost of oil and also reduces the risk of a rising trade deficit. These also work in favour of the markets.

You can also look at this differently. In 2007, Sensex had touched a level of 21,000 and today after 12 years, the Sensex has not even doubled. That is a return of less than 6% on the Sensex in the last 12 years. During this period, the GDP has been growing at a rapid pace and so there is a gap to be filled up. If you look at it that way, then you could be starting off on a major bull rally. The market needs to catch up with the growth that has happened in the last 12 years. So, don’t worry too much about Nifty 12,000 or Sensex 40,000. The markets are just showing their confidence in the new government and the reformist expectations in the months to come.




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Purvesh answered.
1 year ago
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Yes, correction is on the cards. I personally expect a 10% fall in the market in the next 3-4 months.
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