The market sentiments seem to get weaker and weaker, as every economy is in robust shape. The uncertainty and the risk factor is increasing day by day. The experts are expecting that the markets may touch the lows of September 2008 or they may even go below that level.
The only positive thing is that currently the markets are 6,000 points higher than what they were in September 2008. Though some of the experts feel that people should not go for defensive portfolio, they should try to find value, beaten down stocks , and find the sectors which can recover when the inflation level and the interest becomes favorable for the industry.
On Thursday 22nd of September the markets saw a great decline as the Foreign Institutional Investors moved out and the FIIfigure was hardly 1,300 crore. Considering the three year period one can see that most of the turnover in the markets have come from options segment and the cash market is experiencing the brunt. The valuations in the markets are not attractive and the FMCG sector and also to some extent the Pharma sector have become cheaper.
The banking sector has seen a lot of damage and they are around 10-15% down, but the experts believe that they may see 15 % more correction in near future. Rupee depreciation one other factor which is hurting the markets and the only sector benefiting from this is the IT sector. The RBI should start considering the rate hikes and follow a dual policy while making decisions.
Bell The Bull says the investors should remain calm and follow a proper researched approach