Mkts' reaction to Pak tragedy mature: experts

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The news of former Pakistani Prime Minister, Benazir bhutto's death from across the borders jolted markets in India. The indices witnesses extreme volatility but managed to close flat. Nifty closed at 6,080 down just 2 points, while Sensex shut shop at 20,207 down 9 points.

 

Experts feel despite certain negatives in the form of political events in Pakistan, the markets will otherwise be by and large positive. The market has consolidated for quite sometime now around this level, so it is ready to go up.

 

Speaking to CNBC-TV18, Ramesh Damani , Member, BSE and NSE , says that the impact of Bhutto's assassination will be marginal in India and will not have a substantial impact.  He added that markets may be marginally down but nothing more than that. "The impact is going to be felt mainly in Pakistan rather than in India or in the western markets. So, the impact in India will be marginal at best." He adds.

 

Anand Tandon of Gryffon Investment Advisors has a view that the situation in Pakistan is something that should concern all of us and one cannot get away from the fact that from hereon the terror premium in this region has to go up and so that extent investors looking at this region will definitely be a little more concerned.

 

He says, "I do expect to see a mild disruption in the near-term. At least as far as foreign investors sentiment to the market is concerned, I don't think there will be an overriding factor."

 

Experts feel that Indian markets have reacted quite maturely to yesterday's news because most of the international markets were quite down based on that news, Going ahead for the next couple of days, analysts see markets consolidating in this range, possibly up 200-300 points or down 300-400 points.

 

"I think quite positive as we enter into the month of January. Mostly, we are starting the results season, which is expected to be positive. We are also going to have post results season, the Budget event coming up. So, it is going to be pre-budget calculations in the rally, which I am expecting. Overall, the mood for the next week and thereafter is going to be quite positive" adds Deven Choksey of KR Choksey Securities .