Nifty bulls or bears: Who will have the last laugh?

The recent rally in the stock market may be nearing its end, according to experts. They cite several short and medium-term risks, including potential global economic recession, signs of slowdown across sectors in India, and stretched valuations. The banking sector may no longer be attractive, as interest rates have peaked, while the IT sector is facing headwinds from the global economic fallout. Additionally, the consumption side of the economy is looking cloudy, with lower discretionary spending and inventory pile-ups. A 5-6% correction is needed to clear the froth, and investors are advised to be cautious in the short term.