Why is the Indian Stock Market Correcting?

There are multiple reasons why the stock market is correction mode like

  1. High Valuations for companies where possibility of earnings growth is still not visible
  2. The US Federal Reserve rate hike that will lead to decrease liquidity among other things
  3. Inflation on a global scale owing to supply disruption rather than demand
  4. High Crude Oil Prices that are impacting sectors like Logistics, Aviation, Automobile, Chemicals etc.
  5. Possibility of Flare-ups in the World like Houthi Issue in Middle East, Russia-Ukraine War etc.

Hope this helps

Indeed the markets recovered on 25th Jan 2022, but this is a nominal recovery and correction is essential to bring value based system back to the stock market

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Happy Investing!!

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