Nifty, Sensex fall for 3rd straight session: Is this the right time to buy stocks?
BSE Sensex fell 0.81 percent to 70,918.07, and the NSE Nifty 50 lost 0.91 percent to 21,374.95. "A nosedive correction in banking stocks, along with concerns over delays in US FED rate cuts, impacted market sentiments. The addition of discouraging Chinese growth data and rising US bond yields also resulted in widespread profit-booking.
Given the elevated valuations, coupled with the fact that optimism regarding earnings and GDP growth for FY24 is already reflected in the market, triggered the correction," said Vinod Nair, Head of Research, Geojit Financial Services. Moreover, there was also a sell-off in other emerging markets like Taiwan and Korea, indicating that this is an emerging market correction driven by FPI outflows. The FPI selling figures in India yesterday were huge at ₹10,578 crore.
In the context of rising bond yields in the US, FPIs may sell again. But this is likely to be countered by DII buying in fairly valued large caps with growth potential. However, earlier this week, the benchmark Nifty surpassed a new landmark of 22,000 while Sensex crossed the 73,000 mark for the first time ever on January 15.
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