Sensex, Nifty at sky-high levels; a correction or more rally days on the cards ahead?

livemint.com:

Nifty 50 are at a sky-high level and on Monday these benchmarks touched a new lifetime high of 65,300.35 and 19,345.10. Indian market is at a sweet spot with favorable economic conditions. However, they are also trading at a premium compared to other global and Asian cues.

Hence, a sharp correction is likely on the cards going ahead. On July 3rd, Sensex ended at 65,205.05 up by 486.49 points or 0.75%, while the Nifty 50 closed at 19,322.55 surging by 133.50 points or 0.70%. Riding on the strong bulls, Sensex has skyrocketed by 4,037.26 points or 6.60% so far in 2023, outperforming the Nifty 50 by a margin.

The 50-scrip benchmark's year-to-date gains are 1,125.10 points or 6.18%. In a year, the upside in Indian benchmarks is even more breathtaking. Sensex has rallied by a whopping 11,970.28 points or 22.49% and Nifty 50 zoomed by 3,487.20 points or 22.02%.

Compared to a year ago level, BSE-lised firms market cap has risen by ₹52,97,742.82 crore as of July 3, 2023. By end of Monday, the market cap was at ₹2,98,21,576.81 crore as against a market cap of ₹2,45,23,833.99 crore on July 4, 2022. Talking about the markets performance, Shantanu Bhargava, Managing Director, Head of Discretionary Investment Services, Waterfield Advisors said, "'Due to robust profit growth potential and increased demand from domestic and global investors, Indian shares remain appealing despite high relative valuations." Bhargava further added, " The premium over the historical average implies increased optimism about medium-term growth." However, experts believe a near-term correction is on the way.