It seemed until yesterday that our market will be resilient despite the weak handover from the global markets in the previous two trading sessions. But it seems somewhere that weakness is trickling in for our markets too.

I do not know. Where is the problem? All markets correct and we can see it more in the broader market today.

live share market india

I do not know. When it goes up also, we get worried that it is not aligned to the economy and the fundamentals. Now if it is correcting finally, then also we are worried. Where is the problem? All markets correct and we can see it more in the broader market today.

Kunj Bansal (@kunj_bansal) | Twitter

The indices came to the current level of Nifty and Sensex somewhere around 26-27 July, went up to a high of 11,700 odd in Nifty and thereafter it has been in a consolidation mode for the last one-and-a-half months. We should be ready for the market movement on either side, especially after the 50-60% upward movement in the five months. We should be ready for it to go down. I do not see any problem in that and finally if the correction comes and continues, then so be it.

Correction is coming because of global markets. If global markets reverse 5-10-15%, are we likely to fall in line because if they will fall we will also fall?
Yes I do not think there is any dispute in this particular point. We have risen when the global markets have risen and if they correct we will also correct. Coincidentally, on Monday the US market was closed for Labour Day so we did not have much of a clue on Tuesday. Whatever little clue the Indian market took was a clorrection that was observed on Friday. Personally, I think if global markets correct, we will probably correct more and that is a possibility.

Of course, it will be a function of the money inflow. We already saw after a reasonably good FII flow coming into the Indian market, especially in August. We might see some correction coming in and some outflow happening because if the global markets correct, that is where the correction could be more. Let us also keep in mind that the rise that happened in some of the sectors like automobiles, pharmaceuticals was quite sharp. Those are the sectors which will take lead in fall and as a result we could fall more than the fall in the global markets.

What is your perspective on the metals basket? Is there potential for outperformance within the space?
Not really and the reason being that one, the stock prices actually moved well ahead of actual movement in the commodities in this case steel. It is true that steel prices have been going up and are likely to go up further, but the stock prices over the last two to three months have already moved up sharply by around 30-40%.

A large part of the movement and the export and now domestic recovery, also seems to have been priced in. Now that coupled with the fact that we are trying to fathom whether the market will correct or not, whether it will continue to consolidate, whether it will start going up again, we do not know. So I would not probably be a buyer at this point of time even as a short term trader I would bet on the short side not the long side.