Market tanks despite policy measures; brokerages stay cautious on earnings

Since the presentation of the Budget in July, markets have mostly been a one-way street with the Nifty50 slipping over 8%

Recent policy measures such as the steps taken to revive the slump in the auto sector, government’s plan to merge select public sector banks (PSBs), rollback of the surcharge on foreign portfolio investors (FPIs) proposed in the Budget, transfer of nearly Rs 1.76 trillion by the Reserve Bank of India (RBI) to the government’s coffers amid a slowing economy and falling consumption have failed to rekindle ‘animal spirits’ in the markets. 

Most brokerages, too, have been cautiously reviewing the situation and do not seem to be in a hurry to change their outlook for the economy and markets.