
Indian Stock Market – Buy/ Sell / Hold – What to do?
The Indian stock market has seen a significant correction since October 2024, with Nifty corrected 16% from its high and oher indices fell 21% (Midcap 50) and 25% (Small Cap 50). The pain is much deeper in individual stocks which has fallen 50% from its high.
Reason 1: Persistent selling by FII
Indian equities have faced heavy selling by FIIs, with outflows exceeding ₹3.4 lakh crore in the in last 5 months. This trend began in late 2024, driven by global trade tensions, rising U.S. bond yields, and a stronger dollar. Additionally, investors shifted funds from India to other emerging markets like China, further pressuring Indian market
Reason 2: High valuations and Earning Slowdown
The Indian market was trading at high valuations, making it vulnerable to corrections....