One More Big Correction

You can :grinning:

Congrats. :raised_hands:

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I suppose they could move operations into India and expand the reach. This helps employment to many garment makers and adds foreign inflows . Not sure who are the exporter companies but itā€™s a good benefit to the rest of the Asia.

Why Indian Garment companies are using Bangladesh is, because of USA Textile quota system, i think Bangladeshis throwing stone on their own feet

the US is behind everything.

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I have created topic about market correction, market did corrected within shot period or after 2-3 months , but every time expected correction intensity was high , even market condition at that point was not good , but every time after some correction market used to come back and reach new high , i was wondering what was the reason behind it , Even the fundamentalistā€™s were worried & scratching their head about their Nifty PE crossing above 25 but market was not correcting , i did some study about it and found that reason behind is the Mushrooming Mutual Funds, every day one or the other Mutual funds are coming up like Angel One or Zerodha and So on , , , These mutual funds and Legacy Mutual Funds have no option but to invest in stock market irrespective of the Market condition , so on every Market dip , these Mutual Funds are madly purchasing the stocks , I think this will go on , till the situation comes like the one happened in 2008 , unlike the 'techies of 2008 , 2024 Techies are more intelligent and doing investing by SIP mode , until these techieā€™s face situation like happened during 2008 , Till then happy Investing :thinking:

Market usually corrects when no one is expecting a correction!! Imagine people who are waiting for market correction since 21000 levelā€¦ Most people are sitting with cash in hand!!! But sadly market favours noneā€¦ 26K is not far anyway!!

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Even I feel this could partly be the reason for the current market condition.

I donā€™t wanna get into the PE multiple and valuations etc, if we look at it purely from a logical stand point, the Net SIP inflows are increasing month-on-month, and this would certainly increase the demand, driving the prices up, why u ask ?

How long can a MF hold off from investing the money received through these SIP and lump sum ?

Not for long, maybe active funds can keep them as cash or in TREPS for sometime, but certainly most passive/index funds need to invest this money immediately in order to avoid a big tracking error with the index they are tracking.

So irrespective of the valuations and current price, these funds would mostly end up investing in them, eventually driving the prices even higher.

I also read somewhere that the number of free-float shares of Large caps is slowly reducing (due to increase in MF inflows) which could also lead to reduction in supply.

When demand constantly remains higher than the supply, the prices are bound to go up. Certainly the quarterly results and financial performances of the companies have a role play in the price movement, however any negative indicators donā€™t seem to last for long due to higher inflows which keeps getting invested providing artificial support.

Now, many are expecting an interest rate cut by the RBI, which is normally seen as a positive sign, as it encourages more economic activity and borrowings, this can further support the current bullish sentiment.

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High expectations, low result
Low expectations, chances of surprise"

Same is happening currently, market only wants one thing, your surprised face.
Also when real move has to come, market do some false rehersal moves.

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A fundamental crisis that causes a recession where people lose jobs and prospects, thereby triggering an avalanche of redemptions, compounded by SIP reductions/stoppage, that looks to be the only thing that can trigger a major sustained bear market.

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History repeats , the same old pattern correction is happening , but todayā€™s correction on indices seems to the reaction to Israel v/s Lebanon , Iranian war , on topping forthcoming American Presidential election , i feel , if it is the real correction on Indian Indices , Nifty level to be 24000 to 22000 at best 21000 , if Mutual fund Managers does not jump to buy stocks madly :thinking: hope for the Best

Amazonā€™s Great Indian Festival is now extended to stocks too. :wink:

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