A 4-5% correction in the markets cannot be ruled out: Mayuresh Joshi, Angel Broking

In an interview with ET Now, Mayuresh Joshi – Fund Manager, Angel Broking, shares his views on the market:

ET Now: What is your own sense on where and how much the market could lose from here?

Mayuresh Joshi: Clearly, as Nikunj has concisely put the entire thing in perspective from global standpoint., the softness in the markets might just continue. So, another 4-5% cut in the markets, to say the least, cannot be ruled out. Clearly, what would also affect the markets going forward would be weak corporate earnings continuing into quarter two and if that persists, the earnings recovery might just get delayed by six more months.

So, how the capex cycle revives, how the investment cycle revives is key but global cues is something that is going to create a huge overhang on the markets and unless we see some amount of stability there, the markets will remain soft at least from short term perspective.