Market correction insufficient and pressure to continue, says Nomura

They could correct another 5% to 15% due to stress in the macro economy, says the brokerage.

The correction seen in the stock markets thus far is insufficient and there are significant downside risks, given the way macroeconomic data is shaping up, a Nomura equity strategist said on Thursday.

“The markets are trying to look through the current stress we see in the macros. There are potential risks to the market. Our estimates assume no major impact on growth and earnings. The market should have been at least 5 per cent lower than it is now. And if we factor in the concerns on growth and earnings, we will expect much more correction,” said Saion Mukherjee, head of