Stock Market Outlook: Regarding the domestic market, trade experts say that the market remains in a correction mode and the main indexes, Nifty and Sensex, have declined by about 10 percent after reaching the recent peak. Last week, after showing sharp weakness on Tuesday and Wednesday, Nifty continued its decline amid range movement on Thursday and closed the day with a loss of 26 points. After opening on a slightly negative note, the market attempted a slight bounce in the early part of the session. According to market watchers, weakness in the second quarter results of FY 2025 and continued withdrawal of foreign funds affected the sentiment.

Inflation at 14-month high

On the other hand, a rise in domestic CPI inflation to a 14-month high of 6.2 per cent, a stronger dollar index and a rise in the US 10-year yield suggest that volatility will continue in the short term.

"Investors are rpercento reduce their positions, in risky assets as premium valuations may not be sustainable without reasonable earnings growth," said Vinod Nair, Head of Research at Geojit Financial Services.

When will there be a possibility of a big jump

According to Nagaraj Shetti of HDFC Securities, the market needs to show more evidence to consider a possible bullish reversal.

"A decisive f? all below 23500 could pull Nifty down towards 23,200-23,000 levels by next week. However, a sustainable move above 23,700-23,800 levels could open up the possibility of a bigger upside in the market," he said.

Improvement in rural demand

Amid the setback in H1FY25, investors expect some improvement in H2FY25 earnings on the back of a pick-up in government spending, a good monsoon, and improving rural demand.

Consolidation may continue in the near term; however, beaten down value stocks may witness a correction due to their potential outlook.

What is the Sensex-Nifty at right now

The Sensex is currentlbeaten-down. 31, while the Nifty is at 23,532.70. "Going forward, the focus will be on developments in the Donald Trump ? administration in the US and its impact on emerging markets (EMs)," market experts said.

The policy proposals are likely to put pressure on US inflation, which could influence the direction of the Fed's interest rate cuts in the future."