now,” said Andrew Holland, CEO, Ambit Investment Advisory.
According to a research head and market strategist of a US-based financial services group, Thursday’s fall in Indian equities had no domestic context.
“It was an overnight risk off and bad economic data. In such a scenario, it is going to be hard for central banks in the US and EU to pull out liquidity support. The dollar would strengthen and worsen the situation in global equities. It is not an easy decision to pull out monetary easing,” he said on condition of anonymity.
Market watchers said the sharp correction ahead of the Union Budget would leave some room for upside. Historically, markets have corrected after the budget and the chances of positive surprises are more, they explained.
Shares of metals, banking, and real estate companies were among the worst hit, while all main sectors finished in negative territory. Market breadth was weak, too, with nearly 2,000 stocks losing ground as against only 904 gainers.