New Delhi, Jan 16 : Nifty is now up three times from the Covid low of 7,511 in March 2020, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services. This is an indication of a strong bull market and it has a long way to go. But the rally from now on will not be smooth and sharp corrections are likely since valuations are high, he said. More often than not, unexpected events cause corrections. Geopolitical developments have the potential to trigger corrections. But recent geopolitical events like the Israel-Gaza war didn't impact crude prices or markets. Similarly, the skirmishes going on in the Red Sea also may pass without hurting the markets. But there can be a near-term concern that the conflict may widen, so watch out for the events in the Red Sea, he added. Large-caps in banking and IT and RIL are likely to remain resilient even in a downturn. As a measure of abundant caution investors may consider booking some profits and moving the money to fixed income, where the returns are attractive, he added. Deepak Jasani, Head of Retail Research, HDFC Securities said Asian shares dropped to a one-month low, the US stock futures fell on Tuesday as hawkish remarks from central bankers tempered expectations for interest rate cuts and traders waited to hear from the Fed's influential Christopher Waller. European stocks and bonds retreated after European Central Bank officials poured cold water on expectations for rapid rate cuts even as data from Germany underscored the challenging backdrop for economic growth and corporate profits. European stocks fell on Monday as bond yields climbed, and Chinese equities dipped after the country's central bank unnerved investors by skipping an expected rate cut, he said. India's trade deficit narrowed in December as exports and imports rose during the month. The trade gap narrowed to $19.8 billion in December, as compared with $20.6 billion in November. Exports rose by 1 per cent to $38.45 billion. Imports fell by 4.9 per cent to $58.25 billion. Exports rose by 13.4 per cent, on a month-on-month basis. Imports rose by 6.9 per cent, on a month-on-month basis. BSE Sensex is up 80 points at 73,408 points on Tuesday. Titan, L&T, Tata Motors, Maruti are up 1 per cent. IT stocks are down with HCL Tech down 2 per cent, Wipro down 2 per cent. (Sanjeev Sharma can be reached at sanjeev.s@ians.in) /IANS