The other factor that could be preventing a market correction could be that mutual funds are continuing to see huge inflows, says Udayan Mukherjee of CNBC-TV18.
In an interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy, Udayan Mukherjee shared his reading and outlook on the market and specific sectors.
In an interview to CNBC-TV18’s Udayan Mukherjee, Rana Gupta, MD -Indian Equities at Manulife, shared his reading and outlook on Indian economy and equity markets.
One of the biggest stability for the Indian market has been the stability of domestic flows, particularly in bad times, says Udayan Mukherjee
Feels that FIIs waited for key events to pan out for the market and their current investment of USD 2 billion in a week was a serious commitment. But, for an investor, the situation looks a little murky as the market has seen no earnings growth for the past few years.
The later part of the truncated week may see some correction amid consolidation due to the Fed policy meeting, say experts.
"If the BJP were to win or show signs of making it past the poll day after tomorrow, I think that could be an event which takes the market beyond 9000 or even 9100," he said.
The fundamentals of the market are average and may trigger a correction, Consulting Editor Udayan Mukherjee told CNBC-TV18 in an interview. In view of factors such as average fundamentals, earnings concerns and macros, the risk-reward is not favourable here on, he said.
Global recourse such as US President Donald Trump‘s policy changes on visa and healthcare front can fuel instability/volatility in the local markets which could be a cause of concern, according to Udayan Mukherjee.
Finance Minister Arun Jaitley is presenting the Union Budget 2017-18 in Parliament today. Catch live updates here.
Deepak Parekh, Chairman, HDFC is disappointed that there was nothing on corporate tax, except a proposal to cut corporate tax rate for MSMEs (Micro Small and Medium Enterprises) having revenues less than Rs 50 crore to 25 percent.
In an interview to CNBC-TV18‘s Sonia Shenoy & Udayan Mukherjee, Nirmal Jain of IIFL, Raamdeo Agarwal of Motilal Oswal and Neelkanth Mishra of Credit Suisse gave their take on what Arun Jaitely‘s Union Budget may look like and the road ahead.
Any taxation on equity markets, though unlikely, will definitely irk the markets, CNBC-TV18 Consulting Editor Udayan Mukherjee says.
There have been hits and misses, but the misses have been more on the large cap blue-chip front and probably better than expected numbers for some of the midcap and non-index large cap space, says Udayan Mukherjee on the third quarter earnings so far.
Post the Budget there is no rush for foreign money to flood in to the market, instead even if the source of FII selling dries up and domestic investors remain emboldened, encouraged due to the Budget provisions, there is a reasonable chance that the market might have put in a bottom, he further added.
Udayan Mukherjee said that the momentum is with developed markets right now which is reflected in the US market rally.
CNBC-TV18‘s Udayan Mukherjee believes that market could rally in near-term also on back of a good Budget and global strength, but could sulk later once the Goods & Services Tax (GST) Bill is implemented.
Speaking to CNBC-TV18 Udayan Mukherjee said that the next 3 months is going to throw up a lot of opportunities for buying. â€œYou need to be opportunistic. We are going through a painful phase and it is not over. It is only getting entrenched.â€
The year 2016 has seen markets wither one storm after the other and the indices have been resilient to an extent that Nifty hovered around the 8,000-mark. After Brexit, surgical strike across the Line of Control, Donald Trump‘s election and demonetisation, to name a few, Indian markets will enter 2017 battered and bruised, Udayan Mukherjee said.
Speaking to CNBC-TV18 Udayan Mukherjee said that the whole era of easy money driving momentum in emerging markets is over. Markets have been resetting themselves and last night with the Fed reserve raising rates that nail got driven home with more firmness, he said.
"I don‘t think the market is range bound it is just pausing after the fall," said CNBC-TV18‘s Consulting Editor Udayan Mukherjee. The market is moving towards 8500 mark, but moves beyond that looks unlikely.
Speaking to CNBC-TV18 Udayan Mukherjee said that while the market is trying to price in the gravity of the moves over the last couple of weeks, participants don‘t know which way the cookie is going to crumble. Right now, there is hope the market has discounted the worst, but it could change, he said.
Speaking to CNBC-TV18 Consulting Editor Udayan Mukherjee said that if Donald Trump goes on to win, I still hope there is a twist in the tale. If Trump wins, it is a black day, he said
Speaking to CNBC-TV18 Udayan Mukherjee said that if a Donald Trump event takes place on November 9, then any kind of strategy will hinge on what the markets have already discounted ahead.