Jamal Mecklai, CEO, Mecklai Financial Services Views on Market are as appended below:
The expert has been candid enough to express his apprehensions about the state of the market and soup it is in and same needs to be taken with a pinch of a salt.
I am very nervous. The dollar is strong, but the rupee has fallen far more than the euro over the last month to month-and-a-half. There are local factors that are critical. The market is heavily short. We have been advising people to buy, but people look at the market and they try to be logical. I had a meeting at RBI yesterday. I was telling them something that I have been saying for years. Just like there is such a thing as too much volatility, there is such a thing as too less volatility. The market cannot be blamed if a company does not run a prudent risk management practice. However, the RBI could, on a continuous basis, try to ensure that the market is systemic by making it more liquid. But these are all structural things. Right now, it’s sort of a correction situation. I think they should cut the CRR immediately, instead of USD 5 billion, they should allow USD 20 billion in foreign institutional investor (FII) desk because the money is waiting to come in.
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