5 Signs the Indian Stock Market Is About to Correct
Antara Bhattacharyya
Excessive Retail Participation: When retail investors aggressively chase momentum stocks without fundamentals, markets often become overheated and vulnerable to sudden profit booking phases.
Rising Valuation Concerns: Elevated PE ratios across benchmark indices signal overpriced stocks, increasing the probability of a broad-based Indian Stock Market correction.
Weak Corporate Earnings Growth: Slowing quarterly earnings and cautious forward guidance indicate fundamental stress, often triggering reassessment of stock valuations.
Global Economic Uncertainty: Rising US bond yields, geopolitical tensions, or recession fears globally can spark volatility and corrections in Indian equities.