Market crash: Market fall may continue over next week also: Yogesh Mehta

The worry point for most of the investors is whether or not we are going to see that accelerated fall continue next week. Do you believe it was a knee-jerk reaction owing to what we have seen overseas?
The way the market has reacted to the rising bond yields and the rupee also depreciated by almost 1%, it seems it was not just an overreaction by the investors or the traders but may continue over next week also.

There was a similar volatility in the budget week as well. These are the two events which if taken in consideration, shows there is a selling pressure at higher levels. March has always been a little scary as the year ends and even we do not want to see what happened in March 2020 so those are the bad memories.

Putting it all together, we have seen some fearful action across the traders’ community. Nevertheless, for investors, this is not the market to worry about. Even if we do not make a new high, individual stocks and the sectoral opportunity on the long-term investment remains there.

In other words, my opinion is that the prices ran much ahead of time and ahead of the growth they have shown in individual companies. It was not comfortable to buy at that level in the portfolio because you cannot buy something which is six, seven times current and forward 4-4.5 times price to book, especially in the private sector banks and the NBFCs.

There was no comfort and that is why we have seen some reaction. Also, the global liquidity has taken a pause and this is also an additional factor. It may continue further for a few percentage points and then again buying interest will come back.