Valuations will be attractive at 8k level; like auto: Bhat

There is further case for a fall in the Indian market on technical grounds if some market experts and watchers are to be believed. On Wednesday, the Sensex ended 722.77 points or 2.6 percent down at 26717.37, and the Nifty plunged 227.80 points or 2.7 percent at 8097.Issues such as rising oil prices, taxation and uncertain monsoon have been weighing the market since it was 400 points higher than it is now, says UR Bhat of Dalton Capital.According to him, valuations will once again be attractive at 8000-odd level, with long-term investors making a comeback.

Market expert Ajay Bagga said that the market may go down one more leg before it becomes attractive for buying.

"This is because of earnings. Reforms have been put on the backburner. Projects are not getting revived and so FIIs are pulling out money," he said.Siddharth Bhamre of Angel Broking says this fall is due to overall negative sentiments on oil prices etc., with scope for further downside.Added to that, March quarter earnings have been disappointing. But Bhat says not much was anyways expected from the March quarter results. However, he feels numbers of public sector banks (that are yet to be declared) will disappoint the market.But, “long-term investors are looking for a turnaround in the economy in the second half of FY16. In fact they are probably looking at such corrections to get into the market,” he told CNBC-TV18.He believes after this correction, sectors such as pharma, auto and private sector banks are looking good. But it is more stock picking and not betting on sectors that will drive the market, he adds.