David Fuller of Fullermoney.com believes that the May correction has taken away the froth from the market. He feels that the Indian market is unlikely to see much resistance.
Fuller further informs that India will remain their favourite market in the long term. He also adds that inflationary pressure is the biggest worry around the world.
Excerpts from CNBC-TV18's exclusive interview with David Fuller:
Where do you think this market is headed after breaking into new highs?
It is definitely heading higher because India is a very strong bullish story. Global stock markets are firm as well.
Have you set any targets for the Sensex and Nifty?
Our point is that no market will ever move up in a straight line. One has to be a little careful once the big ground numbers are reached, like 13,000, 14,000 because they tend to be the targets in people's minds. And then, markets tend to pause around these levels for a brief while. But India remains my very favourite stock market for the long-term.
Is it just a matter of time before the Nifty takes out its all-time high or do you think it might see some resistance before that?
I do not think it will see much resistance. We have already seen the Sensex take out its all-time highs. I would like to point out that it is much healthier that we had the previous correction. The correction that we saw in the second half of May and the early part of June blows the speculative froth away from the market.
That is a necessary process that occurs over and over again. The market runs ahead too quickly, then the investment demand comes back in, provided the background fundamentals are bullish. They fundamentals are certainly bullish for India and investment demand has pushed the market back to new highs. It will remain very strong through the rest of this year and into the first quarter. The biggest thing that one has to worry about is inflationary pressures, building up around the world. This will happen over the next few months.
Do you track any of the heavyweights on the Nifty? Is there anything that acts as an interesting barometer of how the market might move?
The barometer that I would look at most closely are the bank stocks. The market needs banking sector to do well to perform extremely well. Over all, banks tend to be a lead indicator, more often than not.
For more on markets & business, log on to www.moneycontrol.com
© 2026