Traditionally too, May has been a weak series but June is expected to be a good one, says market expert SP Tulsian.
News of Indo-Pak tensions likely dampened the post lunch session on Dalal Street and the Sensex sheds over 200-points and Nifty dropped below 9400.
Market experts S P Tulsian of sptulsian.com, Ashwani Gujral of ashwanigujral.com, Mitessh Thakkar of mitesshthakkar.com, Rajesh Kothari of AlfAccurate Advisors and Neeraj Deewan Quantum Securities in an interview with CNBC-TV18 try to analyse the reasons for the market fall.
The 30-share Sensex closed 205.72 points lower at 30365.25, while the Nifty was down 52.10 points at 9386.15.
With the kind of run-up seen in the midcap and small caps this kind of correction was warranted, believes Tulsian. Traditionally too, May has been a weak series but June is expected to be a good one, he says. So this weakness will likely continue tomorrow and the day after maybe and will end with the expiry of May series, thinks Tulsian.
Gujral also does not believe that the market is trending on the downside. Moreover, with global markets moving higher constantly, there is a limit to which the market can correct on the downside, he says, adding that we are towards the end of midcap correction as well.
Deewan believes the correction is, in fact, an opportunity to buy. Valuations had become frothy and now maybe because of this correction they will become a bit reasonable, so says, it is time to buy.
Taking on the RBI ordinance and NPA resolution, Kothari says whole NPA resolution will be a long-drawn process and so one needs to be very stock specific here and look for only quality banks.
According to him, the incremental credit cost for PSU banks would come down. The combined holding of PSU banks in the portfolio would be only around 4 percent but remain bullish on private banks and NBFCs. They are currently holding State Bank of India (SBI) and Bank of Baroda, says Kothari.For full discussion, watch video