Domestic issues, RBI rate hike scare investors: Experts

A whole host of problems are plaguing markets. Speaking to CNBC-TV18, C Jayaram, executive director at Kotak Mahindra Bank said the current problem is central to India alone

"If you look back, there were hardly any domestic concerns. Problems generally related to the US or the European markets. This time, the problem is domestic." He elaborated that current account deficit, inflation and a string of issues related to corruption are driving investors away. Talking about the general mood, he said the pro-reform optimism that investors had appears to have been evaporated. In such a situation, key technical levels have broken as traders embarked on short-selling. Speaking about the trend, Deven Choksey, MD, KR Choksey Shares and Securities said short selling started as traders have got active because they have seen the technical levels breaking. There is a concern that the pricing issue may compel the Reserve Bank of India (RBI) to hike rates in its January meet. Both Jayaram and Uday Kotak, executive vice chairman and managing director feel that a rate hike is imminent in the January 25 RBI meet.