It is difficult to predict to what level the Sensex would fall. However, any fall below the 2600 mark is not expected under the present
circumstances, says a leading FII brokerage official.
Says Vijay Pandya of Classic Share and Stock Broking: The slight upward movement of the indices witnessed in the last two trading sessions was largely due to a technical correction. The Sensex could go up to the 2850 level, but would hover around 2600-2700 levels for the next two to three months.
According to brokers, the entry of UTI as a buyer, which for a long time remained as a net seller in the market, also boosted the sentiment. Added to this was the fact that FIIs were seen as active buyers in some of the B1 group shares.
Though there are media reports about the market touching the 2500 mark, it is highly unlikely that this would happen, says Ajay Srinivasan of ITC Threadneedle.
The markets, according to him, would be stagnant between the 2650-2700 levels and any upward movements would come in only after the budget.
While most of the brokers were unwilling to comment at what levels the markets would bottom out, they say poor corporate results, a dismal economic scenario, political turbulence and an indifferent government have all accounted for the fall in the indices.
Most brokers feel that FIIs would play a crucial role in reviving the markets. With securities available at low levels, FIIs are likely to pick up Fera stocks and would therefore continue to pump in more money in the Indian markets, a BSE broker added.
The mood of the market can be perhaps best gauged by BSE chairman M G Damanis words While it is difficult to predict the exact level till which the Sensex would drop, it is certain that securities would not be available free.
