Thursday 6 September 2018

Investors Should Brace For About 10% Correction In Sensex, Nifty

Posted by suhani varma on Thursday, September 06, 2018 with No comments

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The GDP data for the June quarter was above analyst expectations but earnings growth for companies has been patchy and inconsistent. Indian markets, which are trading at rich valuations, are facing increased odds of a 10 percent kind of correction, Edelweiss Securities said in a report.


A pick up in earnings can overshadow the other negatives and support markets. But, 
downgrades cycle in FY19 is just like it was in prior years which does not go well for the markets as it increases the chance of markets crumbling under their own weight.
The brokerage firm highlighted that synchronous global growth of CY16 and CY17 is now behind us. It looks fractured and is plagued with risks.
The US has entered a late cycle indicating peak growth and earnings dynamics. An intensifying dollar liquidity vortex is squeezing emerging markets one after the other and may create more problems if trade wars escalate.

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