In an interview with CNBC-TV8, Amit Dalal of Tata Investment Corp gave his readings and outlook for the markets.
Talking about the movement of the market in the wake of RBI's monetory policy announced today, he said, "Considerable damage has been done today. But yes, I do think upsides are going to be very shy and very muted. Therefore, the market will always have a bias towards the downtrend. It's going to be very difficult for technical calls or even traders to see a turnaround." Below is the verbatim transcript of his interview with Gautam Broker and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video. Q: What is your sense, do you think the unwinding has begun now and there is a consensus opinion on the street now that we are headed lower? What do you think would be the floor for the market for now? A: The direction of the market, the market has completely itself told us in the last two-three hours in the RBI Governor statement and his policy has been broadcast. The fact of the matter is it's not the interest rate increase of 25 to 50 bps deviation from expectation that is important over here. It is what he has said is most important. He has been categorical that we are going to foresake short-term growth in an interest of containing inflation. We are also going to see a lower annual GDP growth rate than what he himself forecasted a few months ago. Definitely, lower than that forecasted by the finance minister as the finance minister himself said that energy, inflation is a cause for concern. Put all that together and basically you are saying that the earnings growth that is forecasted by analysts will have to be revised as time goes forward. Q: What kind of levels do you think the market could see, if there is lingering impact of the monetary policy from hereon? How much could we trade lower? A: Considerable damage has been done today so I will not perhaps discuss more for damage at this level. But yes, I do think upsides are going to be very shy and very muted. Therefore, the market will always have a bias towards the downtrend. It's going to be very difficult for technical calls or even traders to see a turnaround. There is only one joker in this whole pack for the bulls which if I were to make a case. There is if the rupee becomes stronger because of dollar weakening and rupee were to go 44 then, I do see some home for this market on an uptrend reversal of some magnitude. Not substantial but, some magnitude. But besides that, it's going to remain muted for some time to come. Q: Given that earnings also havenDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
