<div>Mumbai:The domestic market remains in correction terrain and from the recent peak, the main indices, Nifty and Sensex, have corrected around 10 per cent, according to trade experts.&nbsp;</div>
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<div>This week, after showing sharp weakness on Tuesday and Wednesday, Nifty continued its decline amid range movement on Thursday and closed the day lower by 26 points. After opening on a slightly negative note, the market made an attempt of minor upside bounce in the early part of the session.</div>
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<div>According to market watchers, weakness in Q2 FY25 results and sustained outflow of foreign funds weighed on the sentiment.</div>
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<div>On the other hand, a spike in domestic CPI inflation to a 14-month high of 6.2 per cent, a firm dollar index, and a rising US 10-year yield signal that the volatility will continue in the short term.</div>
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<div>&ldquo;Investors are rushed to unwind their positions in the riskier assets as the continuity of the premium valuation without a fair earnings growth will not be sustained,&rdquo; said Vinod Nair, Head of Research, Geojit Financial Services.</div>
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<div>According to Nagaraj Shetti from HDFC Securities, the market needs to show more evidence to consider for potential upside reversal.</div>
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<div>&ldquo;A decisive slide below 23500 is expected to drag Nifty down to 23,200-23,000 levels by next week. However, a sustainable move above 23,700-23,800 levels could open chances of sizable upside bounce in the market,&rdquo; he mentioned.</div>
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<div>Amid a setback in H1 FY25, investors see some light in H2 FY25 earnings on account of acceleration in government spending, a good monsoon and a revival in rural demand.</div>
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<div>Consolidation may continue in the near term; however, the beaten-down value stocks may witness bottom fishing due to their potential outlook.</div>
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<div>Sensex is currently at 77,580.31 while Nifty at 23,532.70.</div>
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<div>&ldquo;Going ahead, the focus will be the developments from the Donald Trump administration in the US and its implications towards the emerging markets (EMs). The policy proposals are likely to add upward pressure on US inflation, which may impact the future Fed rate cut trajectory,&rdquo; said experts.</div>
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<div>--IANS</div>
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Weakness in Q2 FY25 results and sustained outflow of foreign funds weighed on the sentiment

Indian stock market in correction terrain, consolidation may continue

Weakness in Q2 FY25 results and sustained outflow of foreign funds weighed on the sentiment

November 16, 2024 | 10:43 IST