Ace investor Shankar Sharma of First Global is not worried about 2-4% market correction after big run. He also feels that bear market for EMs has ended. In an interview to CNBC TV18, Shankar Sharma said, “large caps look tepid; expect midcaps and small caps to outperform now.” “Outlook for IT companies do not look optimistic,” he said. He is of the view that the market will go through the roof if yields come down to 5%. Stating that there is no correlation between policy rates and inflation in India, Sharma expects the new RBI governor to be hawkish.
BSE Sensex plunged over 350 points on Monday and closed 373.94 points down at 28294. Weakness in Indian rupee further weighed on the sentiment. The local currency was trading 3 paise down at 66.69 against dollar around 3.23 pm. Nifty settled 108.50 points down at 8723. According to market experts, apart from profit-booking, a weak trend in Asia on lower oil prices and decline on the Wall Street last week kept the domestic bourses on a sticky wicket on Monday. ONGC, Tata Motors, ICICI Bank, NTPC and Idea Cellular fell 4.43 per cent, 3.12 per cent, 3.04 per cent, 3.03 per cent and 2.85 per cent and stood among top losers in Nifty 50 pack.