Indian Markets have been in a bullish run for the past couple of weeks thanks to the fading fears from the Russia-Ukraine war followed by sliding crude oil prices and the rally in the global markets from the lower levels. Domestic equities are one of the best-performing markets all over the world which have tested their new peaks where in comparison major of the bigger markets are still far away from their respective all-time highs.
This dream run was in Nifty also an unexpected one as there were talks of a bigger recession than in 2008 on the streets starting from the US economy and conquering the whole world. There are various other reasons which have begun this up move like the daily news flow of the Russia-Ukraine war fading out, the US and China issue getting resolved followed by no negative news flow from the emerging economies. On the other hand, valuations also play a key role in any equity markets where the Indian stocks reached comfortable valuations after the recent correction and the SIP money which is approx. 25000 crores monthly have also made a big impact in the recent up move.
At the current juncture, after the Nifty tested all-time highs, the million-dollar question in the minds of retail investors is what is next in the basket for investors. RBI Monetary policy, State Elections Outcome, and the Federal Reserve steps are the three important triggers for the Indian markets which will be tracked keenly by the market participants.
Corrections are part of the journey and they are the best time to add to your investments. It is obvious that the markets will witness profit booking on every rise as people will exchange their hands at every juncture. So, as retail investors, we have to wait for the corrections in the market rather than getting afraid of them.
We expect the market to remain in range and many major corrections should be a good time to enter into the markets. It should also be noted that the markets usually surprise the investors and market participants every time. It is always good to have a SIP and good quality stocks on a regular basis even if your stocks are underperforming as it will give you the benefit of averaging and compounding on regular basis.
Below are the key triggers which we have repeated in our previous conversations too:
- Pre Union-Budget moves
- Mid and Small cap stocks performance
- Global market volatility
- News flow from Russia and Ukraine War
- Crude and Rupee Volatility
As a retail investor, one must be ready with the stock list and the capital to invest in the markets if there is a sudden dip in the indices due to global and domestic uncertainties and keep on adding on to their SIPs in the next calendar year as well.