FIIs taking profits off the table as earnings season draws near: Parag Thakkar, HDFC Securities

In a chat with ET Now, Parag Thakkar, Head Institutional Sales, HDFC Securities, talks about the reasons behind the sudden drop in the BSE Sensex on Wednesday.

ET Now: The BSE benchmark shed around 250 points on Wednesday in the late trading. Do you think this is just a nervousness ahead of key earnings?

Parag Thakkar: The market has seen decent gains, with Nifty climbing nearly 400-500 points from the recent lows. We all know that this time, the earning season is not going to be that great. Infact, the index heavyweights from banking and IT sectors are not expected to do much.

ET Now: But why such a crash?

Parag Thakkar: Of late, we are seeing FIIs taking some profits off the table because the earnings season is ready to kick in and the market has recovered fully post the recent correction. This probably is profit booking, which we are seeing.