Sudip Bandyopadhyay, managing director & CEO, Reliance Money said, "An improvement in the Indian equity market is possible, but subject to stabilisation of crude prices, interest rates and some kind of clarity in the prospective political situation. However, we do not expect significant improvement in the market scenario till next 6-9 months."
Ajay Bagga, CEO, Lotus AMC said, "It's difficult to predict when the situation will improve. A lot will depend on the US economy and on the global commodity prices. If the US economy holds up and commodity prices ease off, we could see some relief and flows both coming back to global and Indian markets. The Indian markets will follow global markets and foreign inflows into India will largely determine the direction the markets take".
But it's not only depressing news. The participants in the FE poll were also optimistic about the return of foreign institutional investors (FIIs) to the Indian market. It may be recalled that FIIs, who were the major drivers of the sustained boom witnessed in the Indian capital market in the last three years, have been net sellers to the tune of $4.6 billion in calendar year 2008 (CY08).