 Markets to correct soon: Prabhudas LilladherPublished on Fri, May 25, 2007 at 09:51 | Source : Moneycontrol.com Updated at Fri, May 25, 2007 at 18:59 72072 Investors following HDFC Bank. Share this News with them.
The Sensex closed Thursday down 145.15 points, or 1.01%, at 14218.11, and the Nifty down 41.30 points, or 0.97%, at 4204.9. Asian markets open down on weaker Wall Street cues. Crude prices are marginally higher at USD 64.34. As per provisional data, FIIs were net sellers to the tune of Rs 160.31 crore in equity on Thursday.
"Our markets are in very much in alignment with the world markets. Indices the world over have been scaling new highs and India is no exception. It's but natural for us to expect some correction, which is the offing, and India should also go through that process, it should not be very surprising," he said.
Bhat expects a clash of flows between the primary and secondary market during the DLF and ICICI Bank issue.
"What really is ominous is that it is once again happening just on the eve of the DLF issue. When DLF's USD 2 billion issue really hits the market, there will be ICICI Bank with USD 5 billion and may be HDFC Bank with USD 1 billion. In short, the primary market space will be competing with the secondary market for this money. A lot the money will probably flow into the primary market. To that extent, the flow into the secondary market may get reduced," he added.
He expects global cues and upcoming IPO offerings to lead to profit booking in the markets. "It's going to be global cues that's going to decide as to how this market will behave. Some profit booking is bound to happen as the way the market has considerably run up and the IPO offerings are very much round the corner. One should see if over the next one-and-a-half to two months, something like USD 7-8 billion is going to be pumped into these Indian offerings. How is the rupee going to behave to this and what is going to be the repercussions on the economy? With the rupee really appreciating what will be the kind of inflows that one can see? These are the points that will be there round the corner for some more time to come," Bhat added.
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Tags: Dilip Bhat , Prabhudas Lilladher , Sensex , Nifty , Wall Street , Crude , DLF, ICICI Bank , HDFC Bank |
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Dilip Bhat of Prabhudas Lilladher said the 
