Market View | Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Market has corrected from near record highs and has turned volatile. A healthy feature of the ongoing 3-month old rally is that it has been characterised by corrections which made ‘buy on dips’ strategy successful.

Much of the ongoing volatility in the market is due to sectoral churning happening on a large scale. This has turned Bank Nifty weak and Nifty Auto and Nifty Realty strong. It is important to understand this sectoral churn and diverse sectoral trends. While Nifty is up by 3% YTD, Nifty Bank is up by only 1%. In sharp contrast to this trend, Nifty Auto is up by 15.86% and Nifty Realty is up by 17% YTD. Banking stocks are witnessing profit booking in spite of the sound fundamentals and part of this money is moving to autos and realty reflecting their improving prospects.