Weekly outlook on market

27-01-2025

Stock market has corrected 12.8% from the peak. These below given factors might be a reason. Trump's strong objection against de dollarization and imposing 100% tariff rate on countries that support this de Dollarization has caused fear in the minds of investors. 20 year high US Bond Yield, strong Dollar index has been a factor for the outflow of money from the emerging markets such as India. This trend will either continue or market will be in a consolidation phase till the earnings of the companies become bright and GDP growth becomes steady. Many blue chip stocks has corrected and could be bought at 3 year and 5 year low prices. Large cap valuation is reasonable and mid cap and small cap may suffer more. It is wise not to sell quality stocks out of fear and stopping SIPs instead use this opportunity to rebalance portfolio and average quality names.

All the above disclosed information is personal and I am not SEBI Registered.