Indian markets have dropped for nine out of the last 12 sessions. Both the Sensex and Nifty have lost around 6.3 percent each since September 13. The Sensex dropped around 3,765 points while the Nifty declined 1,136 points over this period.
Equity markets are likely to extend losses, mirroring the weakness in global counterparts, as investors brace for a stronger interest rate hike by the US Fed this month.
The market had already run up substantially and so is likely to consolidate, making investors selective. However, the underlying current still remains bullish and money will continue to flow in, said Nirmal Jain of IIFL.
The passage of goods and services tax (GST) in the Winter Session of the Parliament could be that catalyst.