The Nifty will see a correction of 1000 points till the budget

AHMEDABAD: Stock markets around the world, including India, have been adversely affected by other unfavorable reports, including fears that a new variant of the corona virus, Omicron, could spread rapidly around the world and lead to a major global financial crisis. Under these circumstances, the Nifty is likely to see a correction of 1000 points by the next budget, market experts said.

With the new variant of the Corona prevailing, many countries of the world are once again in trouble. The path of re-lockdown has been adopted by many countries. The warning issued by the World Health Organization (WHO) to all countries on the issue has sent shockwaves through the market and has caused panic among all investors, including foreigners, said Sandeep Bhatia, head of the Macquarie Group in India.

On the other side of Omicron's concerns, other reports, including a signal from the US Federal Reserve to delay bond wrapping, i.e. early suspension of the bond-buying program, and the rise in crude, have also had an adverse effect on world markets.

Due to this unfavorable situation, foreign investors are constantly moving away from the Indian market. In addition, the two-pronged index has lost significant ground as the market continues to retreat, driven by local players, operators and investors.

According to experts, India tops the list of emerging markets in terms of valuation but the outflow in emerging markets has increased due to adversity of Omicron and Federal. The Nifty will remain range bound by the next budget or it is likely to see a correction of 1000 points.