Global factors to drive Indian markets in the near term: Falguni Nayar

In a chat with ET Now, Falguni Nayar, MD, Kotak Mahindra Capital, talks about the recent correction in Indian markets.

ET Now: What do you make of the recent correction in Indian markets, and do you think after the recent sell off in Indian markets, Indian markets are looking attractive?

Falguni Nayar: The Indian markets have been reined in on the concerns of inflation, and most of the inflationary and high interest rate concerns seem to now have got built in to the current valuation levels. There could be some more downside from here but from hereon, the internal domestic concerns like high interest rate and high inflation will probably not be the main driving force for Indian markets. It may react more to international concerns on say Greece or any of the Lehman kind of event concerns can bring down Indian market even more because it would definitely be a very global concern. With the exception of that as Indian growth picks up and Indian profitability picks up, India should revive but I am not very hopeful in the near term.