This week the Nifty corrected 4%. But did all Nifty stocks correct equally? The answer, obviously, is no. That never happens. If the volatility and correction continues, the Nifty stocks that fell in this round may not be the ones to get battered in the future. The market sees different kinds of sell-offs at different times. And the kind of sell-off decides the pace of the correction in the Nifty and Bank Nifty – both important indices. Understanding this is important. Right now the markets are correcting not only due to a sudden outflow and global developments, but also because we are close to the earning season. How that pans out will have a major impact on how the Nifty and the broader market behave in the short term.
