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Below the Quote on Morning Market by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

"When market valuations are at elevated levels some triggers will cause corrections, making the valuations reasonable and in tune with long-term averages. This time the trigger for the correction has come from the sustained selling by FIIs which has reached Rs 88244 crores by 21st October, according to NSDL. This record high FII sell figure didn’t impact the market severely because of the countervailing action of sustained DII buying. The fact is that even after the correction triggered by the sustained FII selling, Indian market valuations are higher than historical averages even though largecap valuations can be justified by their long-term growth prospects. Since market sentiments continue to be negative a sharp and sustained recovery appears difficult even though a rebound can happen any time. Financials will be relatively resilient in the present market setting."

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