Market requires healthy correction, may come anytime, says alphaniti's UR Bhat

UR Bhat, co-founder of alphaniti.com, while discussing the fundamentals of the market, said one needs to be very cautious when the market is at an all-time high.

“The market is hitting all-time highs every other day. The breakout doesn’t seem to be very convincing. Therefore, it is time to be somewhat cautious,” he said.

There have been some lockdowns all over the country throughout the April-June quarter. So the results of Q1FY22 might not be great. “One needs to be mindful of these things. Therefore, caution is certainly the order of the day,” he added.

“However, sometimes there has to be a correction. The run-up from March 2020 has been quite considerable. It is the record run-up that we have had. So, therefore, even for the health of the market, some healthy correction is certainly required and it could come anytime,” he further added.

Inflation has risen to its highest level in six months. Retail inflation in May accelerated by 6.3 percent, which is above the Reserve Bank of India (RBI) target range of 2 to 6 percent. Further, the rise in core inflation has also touched 6.6 percent.

“It is very difficult even for the MPC to hold on to interest rates for long if this is the sort of inflation number that we are going to get,” he mentioned.