Ashok Jain, managing director and chairman of Arihant Capital believes that the markets may correct further from these levels. However, as inflation cools off and interest rate hikes come to an end, the markets may stabilize. Since the central banks are playing catch-up, we are not able to fully factor in the impact of rate hikes on the markets. But until rate hikes continue, the markets may remain choppy and volatile as liquidity will be crunched. Currently, Indian markets are trading at higher valuations and have seen negative flows from foreign portfolio investors (FPIs).
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