Given the recent global and domestic events and the uncertainty ahead in terms of the US Federal Reserve meet outcome, do you think the worst for the markets is yet to come?
This market has become like a pendulum. We are in a market where two cross-currents, of events — US Fed rate action, Union Budget 2017, outcome of assembly elections in Uttar Pradesh — and earnings are likely to impact sentiment. A good monsoon, implementation of the Pay Commission, adequate liquidity etc, give confidence that earnings can recover. On the other hand, the short-term impact of demonetisation on consumption, effect of the goods and services tax (GST) rollout, etc, are giving worries that earnings could be delayed by a quarter or two. This cross- current of optimism versus pessimism on earnings is likely to keep the market volatile for some time.
What about flows from foreign investors? Will the outflow pick up?
