Be prepared! Market is probably in for a long haul: Experts

Amid fears of policy paralysis and a widening fiscal deficit, a heightened political rift is the last thing Indian investors bargained for. With the opposition demanding that Home Minister P Chidambaram step down, the market went into a frenzy today, the benchmark indices closing nearly 400 points down.

BSE Sensex shut shop at 16488.24 down 388.82 points or 2.30% and the Nifty closed at 4943.65 today, down 118.95 points or 2.35%. This comes against a firming trend in Europe before the European Union Summit scheduled tomorrow. Also read: Sensex closes 389 pts down on local issues, not global woes
Dilip Bhat, joint managing director of Prabhudas Lilladher says that economic parameters in India are in for a long haul on the downside and things are likely to get even worse before they get better. He suggests selling on every rise as the strategy to play such a volatile market.
In fact, most analysts have been projecting that the Street should probably forget about a Santa Claus rally this time around. Amit Dalal of Tata Investment Corporation too sees tough times ahead for the market.
Speaking to CNBC-TV18, he says the issues that plague our market are more structural and related to currency and government expenditure that cannot be solved within a blink of the eye.