The Indian market witnessed record highs on Monday, but a tech glitch on the NSE halted trading on the Nifty for over three hours. Incidents like these do hamper traders’ sentiment in the short term, but for long term investors, things are very much intact.
India is still a buy on dips market and any correction in the intermediate short term should be used to buy quality stocks, suggest experts.
“An issue like the technical glitch with NSE can happen with any system. We all must understand and cooperate. Hope it would never recur,” Nirmal Jain, Chairman, IIFL Group said.
The market, with USD 2 trillion market cap, has already rallied by about 18 percent so far in the year 2017 and was among top performing markets across emerging markets.
India’s market cap stands at USD 2 trillion which is above Taiwan, Indonesia, Korea and Russia. Analyst expects it to almost double in the next 5-7 years led by strong fund flows from global as well as domestic investors.
India is on the cusp of earnings rebound and further re-rating of the market will happen once India Inc. starts delivering on the earnings front. But, right now liquidity is driving markets higher and any negative news would at best lead to a knee-jerk reaction.