And finally, the resignation of the CEO of Nikola (electric vehicle start-up) which has been a stock market favourite will also have a negative impact. The board has accepted Milton’s resignation, adding that Stephen Girsky, former vice chairman of General Motors and a member of Nikola’s board, has been appointed chairman of the board, effective immediately.
Perhaps now, a bit of reality is coming back to markets, which are anyway expensive. I expect market volatility to remain high as the US election approaches.
For the Indian market, we have slavishly followed the global markets
upwards and would likely follow on the way down, too, especially given it has all been liquidity-driven. Moreover, the recent tailwind of the weaker dollar may reverse the short-term as investors head back to safe havens. Any correction should be used as a buying opportunity, particularly towards emerging themes in the information technology (IT) and Pharma sectors. Profit taking may be seen more actively in mid-and small-caps in the short term.
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