Investors in Indian Stock Market Turn Cautious

Investors turned cautious after President Donald Trump started controversy in the United States following surprise change of FBI chief. President Trump is facing a major crisis and investors in the U.S. market turned cautious. As the U.S. markets declined, markets worldwide reacted and declined as well. Most of the stock markets have been trading at their yearly or multi-year highs and even small events of uncertainty lead to fear among market players.

In the Indian stock market, partial sell-off was witnessed on Thursday. However, other emerging markets like Brazil and Turkey faced major declines. Indian stocks closed almost flat on Friday but investors have turned cautious after recent U.S. events.

Most of the stocks witnessed selling at higher levels. Although, the markets haven’t seen a correction for quite some time and many market analysts would consider correction at this level as an opportunity to buy select stocks.

Overall sentiment is positive for the Indian market but global factors can have an impact in the short term. As markets are near their all-time high, many investors would prefer to sell some of their holdings to minimize risk in case of any correction in the market. At current levels, a correction of 10 percent in certain stocks would put them at an attractive valuation.