Asian stocks are higher today. Japan’s Nikkei rose 1.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5% and South Korea 1.5%. The US stocks surged more than 2% on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off.

Back home, India share markets have opened the day on a strong note. The BSE Sensex is trading up by 313 points while the NSE Nifty is trading up by 88 points. The BSE Mid Cap index and BSE Small Cap index opened the day up by 0.9% & 1% respectively.

All sectoral indices are trading in green with information technology stocks and bank stocks witnessing maximum buying interest.

The rupee is trading at Rs 73.47 against the US$.

Speaking of the recent sell-off in the stock markets, many good companies have corrected quite a bit.

The chart below shows the current mood of the market. Headline indices have corrected significantly from their peaks in 2018.

Are These Deep Corrections a Buying Signal?

These corrections are a clear sign of fear across sectors and individual stocks.

As per Research analyst, Ankit Shah, the correction could last longer.

But looking at the history of equity returns, he believes this would be just a passing correction phase.

Despite all the volatility and periodic crashes, equities are still one of the most rewarding and safe asset classes over the long run.

In the news from the IT sector. Infosys Ltd posted a surprise 3.2%-dollar revenue growth in the September quarter (Q2) from the preceding three months, the fastest sequential growth by India’s second-largest information technology (IT) services company in more than a year.

In constant currency terms, Infosys’s Q2 revenue rose 4.2% from the preceding three months. Currency fluctuations, however, took some sheen off the company’s growth as dollar revenue increased at a slower pace to US$2.92 billion in the quarter ended 30 September.