Today market has corrected over 2% and thus we have seen a huge sell off in the Indian Market. Not only Indian market, but we have seen sell off in Chinese market too where the market has corrected over 3%. Correction in market is healthy but whether this correction is a good time to buy or not. Before that let's find out some factors because of which Indian Market fall.
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Global Market
Almost all the market around the world is down today mainly because the US and UK pushed back the interest rate cuts and thus it went against the market sentiments. Since the bond yields are rising, everyone were hoping to see interest rate cut but it didn't happen.
HDFC bank estimation
Yesterday HDFC has posted their quarterly details and they were not good and thus it was quite low as per the estimations. HDFC is one of the heavy weight in both Nifty 50 as well as Nifty Bank. In Nifty 50, it holds around 13% weight whereas in Nifty Bank it holds close to 40%. And as HDFC Bank went doen heavily, both the indices went down.
Sell Off
It was a perfect opportunity for people to dump their stocks. The market was all time high, and the valuations were concerning. When some sell off started,people started booking profit because the sentiments is weak for the near term and there can be more drop in the near future.
These are some of the reasons why we have seen a fall in the market. But that leaves us the question whether to buy now or not. I would say that you can start buying slowly. If you have the capital do not buy at once, start buying via SIP.
The market might see more downtrend in the near future, but it can be reversed too. So you do not want to lose the opportunity. Like I have started buying NIFTYBEES via SIP from today so that even if the market goes down I will get more units for less price.