Buyers trading liquidity rally should expect sharp cut: Harendra Kumar, Elara Capital

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on the current outlook of the market. Excerpts:

ET Now: What is springing up this liquidity driven rally as fundamentally nothing has changed?

Harendra Kumar: You cannot have a market hitting an all-time high when the number of CDR cases is on the rise. The market, even if it goes to a new high, will be similar to 1998-1999 where we went into a huge correction for the next two-three years.

Thus, I would say that buyers that are trying to trade this liquidity rally should be wary that you could end up with a sharp cut sooner than later.