Indiacharts Founder Warns of Potential Stock Market Correction Ahead of 2024 Interim Budget

Indiacharts founder warns of potential stock market correction in India due to geopolitical tensions and 2024 Interim Budget, advising investors to exercise caution and explore hedging options.

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Rafia Tasleem
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Indiacharts Founder Warns of Potential Stock Market Correction Ahead of 2024 Interim Budget

Indiacharts Founder Warns of Potential Stock Market Correction Ahead of 2024 Interim Budget

Rohit Srivastava, the founder of Indiacharts, recently discussed with Suchetan Chaliya the possibility of a geopolitically driven stock market correction in India being the start of a larger correction anticipated around the 2024 Interim Budget. Srivastava expressed concerns about potential risks of contract deferments and slippages, attributing these fears to prevailing uncertain macroeconomic conditions.

The discussion centered on the potential impact of geopolitical tensions and the upcoming 2024 Interim Budget on the Indian stock market, suggesting the possibility of a larger market correction in the near future. Srivastava's comments come amidst increased volatility in the Indian stock market, primarily driven by Foreign Institutional Investor (FII) selling activity.

Why this matters: The potential for a significant stock market correction in India has far-reaching implications for investors, businesses, and the overall economy. Srivastava's insights shed light on the complex interplay between geopolitical events, macroeconomic conditions, and market sentiment, emphasizing the need for vigilance and informed decision-making in navigating the uncertain financial landscape.

Market experts advise investors to exercise caution and closely monitor market developments amidst the prevailing uncertainties. The medium-term market texture is still considered weak due to temporary oversold conditions, and the index has formed a bearish candle on the weekly charts. Industry experts suggest long positions in Brent crude oil, allocations to gold, and US Treasuries as potential hedging options against adverse outcomes.

The upcoming week's market performance will be influenced by two key factors: the US Federal Reserve's rate setting meeting and the potential escalation of the Israel-Iran conflict. Earnings reports from global and Indian large-cap companies are also expected to trigger sharp market reactions and further amplify market volatility.

Srivastava's warning serves as a timely reminder for investors and market participants to remain vigilant and prepared for potential market turbulence in the coming months. As geopolitical tensions simmer and the 2024 Interim Budget approaches, the Indian stock market may face significant challenges that require careful navigation and risk management strategies.

Key Takeaways

  • Founder of Indiacharts warns of geopolitically driven stock market correction in India.
  • Potential risks of contract deferments and slippages due to uncertain macroeconomic conditions.
  • Upcoming 2024 Interim Budget and US Fed rate hike may trigger market volatility.
  • Experts advise caution, suggest hedging options like Brent crude, gold, and US Treasuries.
  • Investors must remain vigilant and prepared for potential market turbulence in the coming months.