The Nifty today broke its Brexit day low of 7950. Demonetisation is expected to have an extended impact on the market and December quarter earnings will be low. Also, the US President-elect Donald Trump will take charge on January 20, which is adding to market’s worry.
Bhat said that market has to find a new low from here. Some positive commentary from the government is needed to bring cheer to market.
IT and automobile are the sectors to hide in at this time, Bhat said. Any bet on banks can be taken after December quarter results only.
Another worry, Bhat said, is the banking sector that continues to be in a bad shape. The banks have not been able to deposit old banned high currency notes to the central bank yet. On this, they continue to pay the tax and cash reserve ratio both.
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