Global factors responsible for market sell-off: Prashasta Seth

In a chat with ET Now, Prashasta Seth, senior fund manager, IIFL Wealth shares his market outlook.

ET Now: What explains the immediate knee jerk sell off that the market saw yesterday?

Prashasta Seth: There was a combination of two things. Firstly, there was some amount of froth that was building up in the market. If you see the way markets have moved especially small cap and midcaps, this kind of correction was necessary because markets were getting slightly bullish and in the phase where nothing can go wrong. So, to that extent it was a good reaction from the market. Secondly, it was possibly a bit of a global factors at play also if you see what was happening in Kospi and what was happening in Thailand. In Thailand, there was some local factors as well but there were some global factors as well so a combination of some amount of froth building up in the market and some amount of global cues according to me let to a sell off in the markets yesterday.