Market may face derating on higher rate hike: Franklin

Tumbling Indian market is losing its shine too soon. Indian market has been on a losing spree for the last three consecutive days. The street is nervous over rising interest rates and higher fuel prices that may dent demand in the world's second-fastest growing major economy and hit corporate earnings.

Warning signals have already been send by most of the experts while a very few of them thinks that this is the best time to enter market. R Sukumar of Franklin Templeton is worried that the fundamentals will continue to deteriorate further.

In an interview to CNBC-TV18, Sukumar explained that the market momentum is currently negative. He warned that market will face derating if interest rates continue to head higher.