Speaking to CNBC-TV18, Nirmal Jain, MD, India Infoline, said global hedge funds are finding it difficult to borrow money. A lot of local brokers are trapped due to client margin funding, he said.
Speculative investors were badly hurt in the January correction, Jain said. "Retail customers were badly hurt as they were highly leveraged. They have been shocked by the correction. The mood is of gloom and disappointment. People are waiting for stability. The sentiment is worst in the last few years. It will take time to recover."
He feels it is a very good time to pick up stocks with a long-term view. "Investors should adopt a wait and watch policy."
According to Jain, global markets have stabilized at significantly lower levels. "FIIs are taking money out of most emerging markets."
The market can fall another 5-7% and stabilize at lower levels, he added.
Source: Moneycontrol.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment