Markets Ride the Rating Wave

In the ever-ebbing tides of the financial world, a famous quote by English author W W Jacobs rings true: “Be careful what you wish for, you may receive it.” The market participants had long yearned for a meaningful correction, and it finally arrived, albeit not as they had anticipated. This correction has been swift and fierce, pushing the Nifty 50 index to breach the 20 DMA on a closing basis, marking the first time since March 2023. The pressing question now is whether this correction is solely influenced by domestic factors or if there is more to the story than meets the eye. Interestingly, this sharp correction is not confined to domestic shores.