"Despite the recent correction we have witnessed, India remains one of the costliest emerging markets currently probably because of better growth expectations and the quality of the companies listed. If one compares most of the developed markets too, India remains expensive."

Now today, we will have a look at one of the most popular fundamental metrics – price to earnings ratio. The Nifty50 PE ratio hit 19.87x on 12th May 2022 for the first time this fiscal. It hit a low of 18.92x on 17th June, the day Street witnessed a violent blood bath.

However, it did introduce a new scheme of taxation on crypto. Section 115BBH was introduced to tax all gains from the transfer of virtual digital assets (VDAs) at 30% without allowing any deduction for expenses nor setoff of any loss. Further, Section 194S was introduced to deduct TDS at 1% on all transfers of VDAs with an intention to widen the tax base.

Stock price movements in the near-term will be in anticipation of better-than-expected Q1 results in these segments. Metals stocks are likely to bottom out absorbing the poor Q1 results.

A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.

Among oil producers, ONGC tumbled 13.4%, Oil India slumped 15.1% and Vedanta declined 4% while among refiners, Mangalore Refinery & Petrochemicals Ltd (MRPL) fell 10% and Chennai Petroleum Corporation Ltd (CPCL) shed 5.2%. The BSE Energy index was the biggest laggard among sector indices, down 4%.

“However, this trend changes completely once these stocks enter the index. Quite contrary to their performance pre-entry, new entrants into the BSE500 on an average underperform the BSE500 by 11% p.a. over three years post the entry,” says Mukherjea, whose firm handles over Rs 11,000 crore worth of HNI and institutional funds.

The relentless FPI selling has to be seen in the context of steadily rising dollar and bond yields in the US, Vijayakumar said, adding that FPIs are selling more in countries with rising current account deficits (CAD) like India because the currencies of such countries are vulnerable to further depreciation.

"We could really use just slightly less bad news in July," said Eric Kuby, chief investment officer at North Star Investment Management. "Hopefully, it could turn the back half of 2022 in a more favourable light."

Traders who are under constant pressure due to volatility should practice yoga at least 5 times a week and do Pranayama to maintain mental health for better decision making and managing stress, recommends Gupta who has over 20 years of trading experience.