New Delhi, March 14 -- Despite low volatility in the domestic stock markets over the past few months, investors are expected to tread cautiously going ahead, in the backdrop of the recent meltdown in the Indian equity market, according to the latest Nuvama report.

"Nifty has declined by 15 per cent over the past five months, marking the longest correction streak since September and the worst post-COVID. Despite this, low volatility suggests that peak panic may still be ahead," the report said.

The report by Nuvama highlighted that India's valuation premium to other emerging markets has dropped significantly to 50 per cent, down from 70 per cent, bringing it back in line with historical averages.

Additionally, the report said that globa...