Ajay Tyagi of UTI Mutual Fund is of the view that market could see some bit of correction as it is already trading at the upper-end of fair valuation, adding that for market to sustain at current levels, there is a need for strong set of earnings.
The impact of good monsoon is likely to come through more in the third quarter. Going forward the uptick in farm income will lead to traction in the consumer space.
However, some of the overhangs that could weigh on the market are US Elections, Fed hike and tightening by Japan/Europe, which could impact liquidity flow. Liquidity has aided markets for an elongated time now.
Earnings for FY18 could be closer to double-digit number, says Tyagi.
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