Motilal Oswal, chairman and managing director, MOFSL, spoke to Krishna Merchant on the markets
Do you feel the market has bottomed out or do you expect the slide to continue? I do not know if it is the bottom, but I am very confident that the corporate performance is good. The under current that is the micro economic factors are very strong except the interest rate, which is linked to inflation is worrisome. The market is getting impacted because of the foreign institutional investors’ (FII) inflows are becoming negative in this calendar year. I do not know that FIIs will be buyers or sellers, but I can see that the lead indicator is economic performance. We, as a country, are doing fine and there may be liquidity tightening measures that we will see in short term. The major concern is inflation and various scams which has dampened the markets. Are you expecting a pre-Budget rally? There may be a pre-budget rally if some where we get the indication that the JPC (Joint Parliamentary Committee) is being formed. I think the government has no option but to accept the demand from the opposition for a JPC. Once JPC is done, we expect a good budget session.
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