The Sensex plunged 654.25 points to close at 27457.58 and the Nifty fell 188.65 points to 8342.15.
N Jayakumar, President, Prime Securities , feel the hope rally is long over and thinks the markets lack conviction due to some uncertainties. “Little things like the coal block allocation, which is fantastic, very openly done, transparently done, big revenue collection, but then you hear that 2 or 3 of them are sort of getting called back. I don’t know if at the end of the day there is a method in this entire thing, I am really hoping there is because with one level of transparency and governance what has added on the other side is huge cost to the Indian corporate space,” he said.
According to Jayakumar, March is a peculiar month for Indian markets. “Whether we like it or not, there is lot of private funding that goes on in the market place which gets pulled out,” he said. He expects to see some relief in April “but it will be result-focused”.
Jayakumar feels the markets are displaying some amount of maturity. “The markets have been scaling new highs — the number of new lows on a daily basis has almost kept pace with the number of new highs. Markets are ruthlessly banishing stocks they don’t like,” he said.
Anil Singhvi, Chairman, Ican Investment Advisors, too feels that the momentum which started last May seemed to be now almost getting over. “The hangover is over and people are coming back to the reality,” he said.
“We were ahead of the times but hoping that things will correct, hoping that we started with discounting FY15 earnings, then started discounted FY16 earnings then we started discounting FY17 earnings but at the end of the day the fundamentals have not changed at all,” Singhvi said.
He feels the situation on the ground remains as bad or as good as it was 8-9 months back. Thus the stock markets are correcting themselves instead of talking about FY17 which is looking far too off now.