In the short term, stock prices are impacted by events and the narratives built around them. Over the next few weeks, it would be all about Trump and the noise created over his statements. However, stock prices and the absolute value of stocks depend on the fundamentals of the sector as well as valuations, which are still high despite the correction and volatile markets. But, at the same time, fundamentals are improving for several industries. So, analysts are bullish about specific sectors and stocks. If the Nifty and market breadth stay positive in the coming trading sessions, it is likely we will see mid-caps gaining strength. It would also probably signal the end of this phase of correction.
