Bullish, but don't bet too much on it yet

If good sentiment erodes, market can see correction as fundamentals can't justify current valuations

The market zoomed past the Nifty 10,000 mark despite increasingly disturbing macro data and the index ended Friday above that level, despite some unloading from tired bulls. Valuations are optimistic to say the least, especially in the face of an open-ended disruption like the goods and services tax (GST) implementation. Globally, there are storm clouds hovering over the US, with President Donald Trump looking increasingly likely to be called out for “Russia-gate”.

The Purchasing Managers’ Indices (PMI) for July hit multi-year lows in both the services and manufacturing segments. Both indices fell below the 50 mark and this indicates a trend