Stock markets may see another phase of correction: Report

The Indian economy is in the beginning of an economic recovery, but there are thick headwinds for domestic equity markets going ahead and another phase of correction is likely, says a report.

According to the report by Edelweiss Investment Research, approaching elections, elevated bond yields, emerging market currency weakness and deteriorating current account is likely to keep Indian markets under check.

"Nifty is likely to trade near the 10,000 level in the short term and as we approach FY19 end," the report said.

It further noted that "weakness in breadth throws out cautious signal for the trend. This indicates that markets may see another phase of correction."