Worst of Market Selloff Might Be Over Despite Tariff Risks

Analysts caution against investing large sums of money

- NIKITA VASHISHT

Indian stock markets have been staging a swift recovery for the past few days, finding their feet after months of selling, especially by foreign investors.

On Monday, the BSE Sensex surged for a sixth straight day, adding another 1,079 points. Overall, it has added 4,156 points in the past six sessions. The NSE Nifty advanced 308 points, climbing 1,261 points in six days.

While analysts see the worst of the selloff behind the markets, they remain skeptical about the sustainability of the rally, and caution investors against deploying large sums of investible money.

"The 'big' correction in the markets is behind us, but there could be one more dip before we see a sustained uptrend," said Jignesh Desai, CEO, institutional equities, Centrum Broking.

Historically, markets have seen profit booking in February, March, and sometimes in the early weeks of April, due to funds' rotation at the end of a financial year, he said. With US President Donald Trump's deadline to impose reciprocal tariffs coinciding with this, he expects some pullback on the bourses in the coming weeks.

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