Global markets in correction mode
Seoul, Tokyo, Shanghai and Hong Kong settled in the negative territory; European markets were trading in the green
image for illustrative purpose
New Delhi: A predictable market trend is that high valuations will lead to corrections. The unpredictable part is the timing and the trigger for the correction. In the last few days, globally markets are correcting and the trigger for the correction is profit booking, which is normal and rational, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Markets have a tendency to overreact. Perhaps the sharp rise in the US market in response to the Fed pivot was a bit overdone. The marginal rise in the US bond yield is a reflection of the market concern regarding the timing of the expected Fed rate cut, he said.
A good strategy now would be to move some money from the overpriced mid and small-caps to the fairly- priced high quality large-caps like the leading banking names, he added.
BSE Sensex is up 447 points at 71,803 points on Thursday. NTPC is up 4 per cent, Bajaj Finance is up more than 3 per cent.
