Why stock markets in India may reverse in July – Times of India

New Delhi: Equity markets in India are set to rebound from a three-month selloff triggered by rising interest rates and foreign fund outflow, if history is any guide.
The NSE Nifty 50 index fell nearly 10% from April to June, the eighth time since 2008 that the benchmark fell for three consecutive months. But in each of the last seven events, the gauge turned the other way and delivered an average of 7% gains in the fourth month, data compiled by Bloomberg show.

According to Karthik Jonagadla, founder of Mumbai-based Qantas Research, “There is a strong case for an uptrend in July.”
Nifty shares are now trading on a trailing basis at 19.5 times their earnings, which is the cheapest level since February 2016, adding to the case for recovery, he added.