The Nifty 50 index, after enjoying a record 55-month bull run without a 5% correction, has now fallen for five consecutive months\u2014a first in 29 years. If one looks at the breadth of the correction, it is the worst post-covid.<\/p>\n\n\n\n
Surprisingly, all this occurred amid low volatility, indicating that peak panic may still be ahead, said brokerage firm Nuvama Institutional Equities in its research note.<\/p>\n\n\n\n
relentless fall since September without a global risk-off is unprecedented. The correction is largely driven by India’s weak earnings amid high valuations.<\/p>\n\n\n\n
The index has dropped 15% from its recent peak due to poor earnings and persistent foreign institutional investor (FII) selling. However, with India’s valuation premium to emerging markets (EM) now at its 10-year average, Nuvama believes the India-specific de-rating may be over.<\/p>\n\n\n\n
“We think the correction is owing to India\u2019s earnings reconciling with not just weak top-line growth, but also its EM peers. High valuation only added to the misery,” it said.<\/p>\n\n\n\n
While the Reserve Bank of India’s easing measures may provide short-term relief, global uncertainties\u2014such as a US growth slowdown and political risks\u2014pose further downside threats.<\/p>\n\n\n\n
When do markets bottom?<\/strong><\/p>\n\n\n\n Historically, equity markets bottom out when earnings recover or when central banks implement deep rate cuts. However, global bond yields remain elevated, limiting the impact of monetary easing so far.<\/p>\n\n\n\n Nuvama suggested that the earnings yield minus bond yield remains a reliable indicator for market turnarounds, which has yet to signal a reversal.<\/p>\n\n\n\n Given rising global uncertainties, the brokerage continues to maintain a defensive bias and prefer large caps over small and mid-cap stocks.<\/p>\n\n\n\n Nuvama has downgraded IT to ‘Underweight’ from its earlier rating of ‘Neutral’, considering high relative valuations and a weakening US outlook. It has raised ‘Overweight’ stance on consumer, given increased policy focus.<\/p>\n\n\n\n Nuvama is ‘Overweight’ on consumer, private banks, insurance, telecom, pharma, cement and chemicals. Its has an ‘Underweight’ stance on industrials, metals, power, IT, autos and PSUs.<\/p>\n\n\n\n Key risks, as per the brokerage, include large easing by Fed or sharp rupee depreciation.<\/p>\n\n\n\n Eqwires Research Analyst<\/a><\/strong><\/p>\n\n\n\n Top-notch SEBI registered research analyst<\/a><\/strong><\/p>\n\n\n\n Best SEBI registered Intraday tips provider <\/a><\/strong><\/p>\n\n\n\n info@eqwires.com<\/strong><\/a><\/p>\n\n\n\n Telegram <\/a>| Facebook <\/a>| Instagram<\/a><\/strong><\/p>\n\n\n\n Call: +91 9624421555 \/ +91 9624461555<\/em><\/strong><\/p>\n\n\n\n www.eqwires.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The Nifty 50 index, after enjoying a record 55-month bull run without a 5% correction, has now fallen for five consecutive months\u2014a first in 29 years. If one looks at the breadth of the correction, it is the worst post-covid. Surprisingly, all this occurred amid low volatility, indicating that peak panic may still be ahead, said brokerage firm Nuvama Institutional Equities in its research note. relentless fall since September without a global risk-off is unprecedented. … Continue reading “Peak panic on the Nifty is still to come, warns Nuvama – Shares top bets”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":3827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-3826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-sebi-registered-advisory-company"],"_links":{"self":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/3826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/comments?post=3826"}],"version-history":[{"count":1,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/3826\/revisions"}],"predecessor-version":[{"id":3828,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/3826\/revisions\/3828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media\/3827"}],"wp:attachment":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media?parent=3826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/categories?post=3826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/tags?post=3826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}