FIIs more optimistic on India than domestic investors

The market has been going through a volatile phase since last week. The sentiment was weak post the Cyprus default controversy and adding to market's pain, the foreign money inflow too has slowed down considerably in March.

Also read: StanChart Bank does not see more Cyprus-like bailouts ahead Global sentiment and liquidity, according to Udayan Mukherjee, managing editor, CNBC-TV18 are ruling the Indian equity market. These factors and the uncertainty associated with it is making the current market situation a little confusing. Below is the verbatim transcript of Udayan Mukherjee's comments Sometimes it is an Italian election, sometimes it is a currency move, sometimes it is the interaction between US bonds and equities. Figuring the global mood is impossible. The fundamentals are not great about the market. You will hear a lot of commentary about how things have bottomed out and things are improving. I think it was the second quarter of 2012 where we had just above 5 percent gross domestic product (GDP) reading. At that point, everybody said that that was the lowest point of the GDP and that we had troughed out after which things will get better. For one quarter, things did get better and after that, we came down and hit 4.5 percent for whatever reasons. Foreign investors are much more optimistic than local investors as local investors can see what is happening. If one just goes to a small businessman today or even a mid-sized company and asks them how are things, they will tell things are awful. Very few companies will tell that things are great today on the ground. There is a fundamental reason why the stock market is struggling.