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Below are Views On The health crisis India is going through and localised lockdowns & restrictions on economic activity warrant a market correction By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The health crisis India is going through and localised lockdowns & restrictions on economic activity warrant a market correction. The targets of around 11% GDP growth and above 30% earnings growth for FY 22 that the market had assumed pre-second wave are likely to fall short. The steady rise in test positivity cases and the steady decline in recovery rates are areas of serious concern. But, this negativity need not reflect fully in the market since the global clues are positive. The sharp recovery in global growth led by the US and China augur well for markets globally. The decline in US 10-year yield from the recent high of 1.75 % to 1.56% presently is a major relief & support to markets. Bulls would be reluctant to go long; bears would hesitate to go short massively. Time to wait & watch"

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