Sensex may slump to 16k by June end: Ambit

In an interview with CNBC-TV18, Saurabh Mukherjea, Head of Equities from Ambit Capital says, the Sensex will correct towards 16,000 levels in the next two months. Banks and non-banking finance companies (NBFCs) are likely to remain under pressure, he adds.

Below is a verbatim transcript of his exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: You have been cautious on the market for a while now- is this the big correction you were expecting?
A: The events of tomorrow have indicated that inflation is a silent killer for the Indian economy and punitive policy action was likely at some stage. A lot more is on cards in terms of market correction and policy measures to tame rising inflationary pressures. We, therefore, expect the Sensex to head towards 16000 levels over the next couple of months. At the same time, we have been advising our clients who are largely institutional investors around the world, to build positions gradually in high quality Indian names with a long-term horizon. The Nifty or the Sensex don