MARKET OUTLOOK

October month has experienced some turbulence and the equity market has become quite volatile. The broader indices have seen corrections of 8-10 percent whereas some of the sectors and stocks have seen far higher corrections. But we should not miss out the point that these corrections have come after a relentless bull cycle of last two years. Human minds have the tendency to remember the recent past and overlook the early events.

A little over two years back (around June-July 2022), we witnessed a similar kind of correction where the Nifty fell to about 15300 from a high of 18300, approximately about 15-16 percent fall from the peak. Of course there were reasons for such fall but eventually when it came back, it touched not only the previous peak but went on to cross 26000. And this kind of fall and rise did not happen for the first time, but we thought to highlight the most recent experience. Rise and fall are part of this journey. What is important is to stay the course and follow asset allocation suited to your style.

Market will always get reasons to fall and go up. Sometimes ignoring them for bigger long-term goals acts in our favor. There is no fundamental change in the outlook of our country. This fall is more tactical than structural and the long term investors should take advantage to build up their portfolios further.

Happy Investing !!!