InvestorQ : What is your stock market outlook for 09 September 2021? Could we see a sharp correction ahead of weekend?
indhumathi Sayani made post

What is your stock market outlook for 09 September 2021? Could we see a sharp correction ahead of weekend?

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diksha shah answered.
3 months ago
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From the early trades on Wednesday, the markets were extremely cautious. That was more due to the tepid economic recovery expected in the US and the infrastructure stimulus still not forthcoming. However, the correction was not too deep as Nifty closed with just losses of around 8 points for the day. The A/D ratio was surely under pressure.

One sector to watch out for in the markets is the private life insurance space. These private insurers like SBI Life and ICICI Prudential Life have reported extremely strong growth in new business premiums or NBP for the month August 2021 even as HDFC Life reported tepid numbers. The overall private insurers may see a positive re-rating.

Foreign investors were net sellers to the tune of Rs.803 crore on 08th September but domestic institutions were largely neutral. In the last few days, the FIIs have again resumed selling. In August, the FII buying came predominantly from IPO investments and we have to await the IPOs to commence from next to test the FII flows into equities.

Global markets across the US, Europe were weak and SGX Nifty is also trading 32 bps lower. Indian markets will get into a 3-day weekend and there will be some obvious caution in markets. Traders will look to wind down their leveraged positions in the market so expect some late selling on Thursday. VIX is still at a fairly ambiguous level.

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