Nifty in three days of correction has shed close to 1000 points from its all time high levels of 18,600 and given the massive gains we have seen, there is expected to be weakness persisting. The scenario shall also be due to the global situation as the focus shifts to the Federal Reserve which is due to announce its policy outcome Wednesday.
Amid a strong bull run, this correction is said to be a healthy sign by experts. The heightened volatility may still be continuing. In the week gone by, last day of trade saw correction in the banking and IT pack.
Motililal Oswal Financial Services chairman believes that this is not a major concern as corrections are part of a classic bull market.
"This is an absolutely textbook bull market, which we are in now, it is very difficult to predict every day, every week, every month," he said.
"It is a very, super-hot IPO market, super-hot volumes in the marketplace. This party can be very long and very large, you cannot put a finger and say that now IPO market is very hot so of course there is cause for correction," he added.
Back to the global landscape considering high inflationary pressure, there are expectations that central bank will begin to slowly withdraw its asset buying program, affecting the market liquidity.
Already the effect of monetary tightening stance has been felt with FIIs constantly being the sellers in the Indian markets. The main impact has been felt on the IT and banking pack that has the most ownership by FIIs.
Back home, there is mixed set of results being reported by India Inc. i.e. impacting share prices too. For the next week, quarterly numbers of pharma as well as PSU companies' are due to be revealed hence focus shall be on them.