InvestorQ : What is your market view for Wednesday 12 May and do you see the correction continuing?
Dia Deshpande made post

What is your market view for Wednesday 12 May and do you see the correction continuing?

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diksha shah answered.
1 month ago
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After a series of bullish days, it looks like the bulls finally relented on 11 May. Markets have been rallying ever since the RBI governor had announced a COVID rescue package earlier last week. Some metals and mineral companies came under pressure but PSUs continue to sought after. The undertone however still looks fairly strong.

On Tuesday, it was a bit of global unwinding of positions across markets and this also led to a sharp correction in the Indian markets. In India, there already appears to be some degree of caution on the front of sectors like IT and FMCG where there are serious valuation concerns. Sensex 50,000 and Nifty 15,000 are proving to be roadblocks.

Foreign portfolio investors or FPIs sold Rs.336 crore on Tuesday in equities even as domestic institutions sold Rs.677 crore of equities. There has been some caution among FPIs in India since late February after the resurgence of COVID. For the month of May till date, the FPIs continue to be overall net sellers, just as there were in April.

Global cues are not exactly looking great as we begin trading on Wednesday 12 May. While the NASDAQ closed flat, there was a sell-off in other markets. Dow was down -1.4%, FTSE -2.5%, French CAC -1.9% and German DAX -1.8%. SGX Nifty is flat in early trades but could come under pressure once the Dow Futures open and based on Asian cues.

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