Markets are consolidating: Vikas Khemani, Edelweiss Securities Limited

Vikas Khemani, President, Institutional Equities, Edelweiss Securities Limited, in a chat with ET Now, talks about the market outlook.

How are you mapping the market mood in the near term? More importantly two crucial data points are going to come out today, you have the inflation numbers as well as what the RBI will do in terms of the policy rates?

Market currently is in a phase where it seems to be shrugging off all the negative news or more or less all the expected negative news is discounted in the market. If you see today, the inflation data or possible expected RBI action, the market is already expecting about 25 basis point kind of possible hike scenario. I do not think that there would be immediate negative reaction.

The way I see currently, markets are consolidating while there is absence of any immediate trigger in that but it seems to be forming a nice bottom for an up move. The moment the market gets a signal that interest rates are peaking out or has peaked out or inflation is sort of peaking out, market will start rallying but market is currently waiting for the signal to emerge either from the commodity prices or from the local news flow perspective.