Here are 5 major risks in the current markets

India markets are yet again witnessing all-time highs after facing some headwinds in the past month, where global trade faced some backlash after Japan's central bank decided to increase its interest rates combined by the weakening of US economic data.

What can investors watch out for in the coming time? Here’s what some experts have to say

Trideep Bhattacharya, President and CIO-Equities, Edelweiss Mutual Fund

I feel that investors should keep an eye out for US elections results and its impacts on interest rate cuts. Secondly, how the Prime Minister Narendra Modi-led NDA 3.0 government negotiates the coalition could affect the policy stance. Thirdly, valuations in the SME markets are indicating irrational exuberance and any mishap there could impact the broader markets. One of the big concerns could also come from commodity prices especially crude oil. Lastly, one has to also keep an eye on the mandate in the upcoming state elections.

Aniruddha Naha, CIO, Alternatives, PGIM India AMC

Major triggers come from slowdown in demand across big markets like China, which can affect global trade. China is exporting deflation by increasingly pushing exports, which is one concern for Indian companies. Other obstacles to watch out for include the concerns surrounding the commercial real estate loans in the US, where post Covid office space utilisation has come off drastically, impacting rentals and in turn hampering the servicing of the loans taken to construct these office spaces. This can affect the US banking system heavily. Lastly, valuations are not exactly comfortable, across the market so one needs to keep a tab on it.

George Thomas, Fund Manager, Quantum MF

In my opinion, one has to watch out for valuations as many segments in the markets are highly valued, especially small-caps. Also, retail investor flows have to be watched as many investors entered the market on the back of high returns and any corrections could affect flows. Apart from these, macro events like developments in the US economy have to be keenly observed and any movement in the oil prices.