Is it time to increase cash holdings in anticipation of market correction? Sandip Sabharwal answers

economictimes.indiatimes.com:

«Mutual fund figures for I think the last month are still to come out, but they should be healthy. So, there are flows into mutual funds, PMS, AIF, etc. So, I think that keeps the market buoyant. On the other hand, we are also seeing huge supply these days, like on a daily basis now we see offer for sales, QIPs, etc. In fact, I think in last many days, daily average would be more than Rs 7,000-8,000 crores,» says Sandip Sabharwal, asksandipsabharwal.com.

It is just one of the phases of the market that everybody likes when correction comes and before they get a chance to buy, the markets recover.
Sandip Sabharwal: Yes, so I think there are two factors playing to it. One, the foreign investor selling seems to have suddenly died out and although they are not buying in big numbers, but still they are small positive numbers and domestic liquidity, as all of us know, continues to remain strong.

Mutual fund figures for I think the last month are still to come out, but they should be healthy. So, there are flows into mutual funds, PMS, AIF, etc. So, I think that keeps the market buoyant. On the other hand, we are also seeing huge supply these days, like on a daily basis now we see offer for sales, QIPs, etc. In fact, I think in last many days, daily average would be more than Rs 7,000-8,000 crores. So, that eventually will I think lead the market to give up some gains is my best guess. So, September, October, in any case, tend to be months where after big up moves, some corrections tend to happen globally also