Market volatility due to F&O expiry and MSCI rebalance: Jitendra Sriram

In a chat with ET Now, Jitendra Sriram, Director & Head of Research, HSBC Securities, shares his views on the turbulence that markets witnessed yesterday.

ET Now: What have you made of the kind of volatility and the bout of profit-taking that we saw yesterday?

Jitendra Sriram: I would not relate it so much to what is happening at New Delhi right now. A lot of it has got to do with the F&O expiry this week plus you have the overhang of MSCI rebalance into this month end. So those factors are more critical for short-term gyrations of the market rather than taking a call on policy. Everybody in the market understands that these are more longer term issues and no government can turn these around at a flick of a switch.