Do you see the Thursday correction in the Nifty and Sensex continuing on 13 November too? What is your quick view on markets on Friday?

The correction had to happen after rallying nearly 1100 points on the Nifty virtually without any response. After a near 10% rally over the Biden effect, it was time to take some profits, especially on the banking stocks. That is what happened on Thursday.

Although the Nifty corrected to below the 12,700 levels, the rally may still have legs to at least hold the market at higher levels if not rally to 13,000. After the heavy rally in banking stocks, there was some profit booking, but the broader market rally was still intact.

Of course, Markets will be tad cautious on Friday and on Muhurat Trading on Saturday as they are already at record high levels. If you look back at Samvat 2076, Nifty has given around 9% returns, but that really masks the uncertainty and volatility underneath it.

FPIs continue to be buyers although the pace seems to have slowed, which is natural with most of the MSCI adjustment done and dusted. FPIs were net buyers to the tune of Rs.1514 crore while DFIs sold Rs.2239 crore on Thursday. Optimism continues for FPIs.

Global markets across the Dow, NASDAQ as well as the DAX, CAC and FTSE gave up over 1% of value on Thursday. Even the SGX Nifty is 100 bps lower in early trades and pressure is likely on Friday too as the markets shut over a long week end, except the Muhurat trade.