Key Points
Market sentiment is buoyant due to strong domestic macroeconomic indicators and increasing optimism regarding potential interest rate cuts by the Federal Reserve in the near future..
Nevertheless, experts warn that the market has discounted most positives and a correction could be imminent due to the lack of fresh triggers..
Record highs of the Sensex and Nifty showcase the market's bullishness, but investors should be prepared for potential 3-5 per cent corrections," said Trivesh D, Chief Operating Officer at Tradejini..
According to brokerage firm Motilal Oswal Financial Services, Nifty is trading at a 12-month forward PE ratio of 19.5 times, which is in line with its long-period average (LPA) even as broader markets trade at expensive valuations..
V K, Vijayakumar, Chief Investment Strategist at Geojit Financial Services also pointed out that there is fundamental support to the market from Indias impressive GDP growth and decent corporate earnings..
