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But that also does not mean that we start buying immediately on the first day of a sharp correction. We have to find out the points where the market will get into an equilibrium phase which means when the selling abates and when we will see good emergence of buying coming across into the market internals.

Hedge funds that make both bullish and bearish equity bets pretty much stopped purchasing shares to return to lenders this week after previously doing it at the fastest pace in more than two years, data from JPMorgan Chase & Co.’s prime broker unit show.

Regarding mutual funds, some funds, especially passive funds tracking an index, may have 100-150 stocks in the portfolio, leading to over-diversification and suboptimal returns. Concerning this factor, a stock portfolio may fare better.

The pressure to figure it out soon is high after a $7 trillion rally broke out in the middle of the Federal Reserve’s stiffest rate-hiking campaign in a generation. Feeding arguments to let stock bets ride are solid earnings and chart patterns suggesting the gains may last, including the S&P 500 erasing half its bear-market losses, a feat with an improbably sound record of success.

On expectations from the market, he said when returns reach extremes, they can revert to even lower than base rates. “The same is applicable for valuations as after a point of time valuations make a difference! Don’t expect returns of CY20 and CY21 every year,” Bhasin said, adding that sectors which witnessed heightened participation on narrative pretext can form valuation excesses as witnessed in tech stocks, especially categorised as new-age stocks in CY22.

"The RBI took its third rate hike to bring the repo-rate to 5.4%; however, it sounded a little less hawkish. With the softening of commodity prices and crude more specifically, we believe peak inflation might just be behind us."

The Q1FY23 earnings were keenly awaited as it was the first quarter post Covid world. The quarter gone by was resilient and despite global challenges, it was able to stand its ground.

The biggest gainer among all was Brightcom Group, which gained 21 per cent to Rs 44.55.This is after the company reported a 163 per cent YoY rise in net profit at Rs 277.24 crore on a 126.38 per cent YoY rise in consolidated revenues at Rs 1,480.61 crore.

The recent correction was a good opportunity to invest but in hindsight we all are experts. So now if you have missed this opportunity you will have to see beyond what the market is factoring.

Our base case remains that safe-haven demand should fade further, assuming that the US economy does not slip into recession. The bull case remains a recession as it should lead to a significant pick-up in safe-haven demand. Meanwhile, silver should continue to move in gold’s slipstream.