Markets to consolidate between 8500-9000 levels till Budget 2015: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi – VP, Institution, Angel Broking, shares his views on markets. Excerpts:

ET Now: The trade setup this morning looks positive. We have got almost in-lined positive CPI as well as IIP numbers. Nice third consecutive day of gains but does it look like earnings perhaps could sour sentiment for instance, disastrous set coming in from BHEL?

Mayuresh Joshi: Nothing really has probably changed in the past few weeks and we have always been maintaining that the corporate earnings are expected to stay tepid. Q4 will also remain tepid. Q3 has been pretty disastrous as far as India Inc goes. However, the global setup itself is highly volatile. So, look at crude oil movement, the deflationary pressures with global demand probably remains weak, Ukrainian crisis what probably happens with Greece, all these factors probably stay in the background.

To top it up, the Chinese demand has not been great and whatever data is coming from the Chinese markets is not encouraging as far as the world scene goes. So if you combine all these factors together and then you put into context what the Indian markets have probably done, it is probably based on expectations, which are running a little bit too high ahead of valuations and ahead of corporate earnings.

For corporate earnings to revive or the government policies to probably get implemented on ground is going to take at least a couple of quarters away. Though RBI has started the structural rate cut scenario, a lot more probably needs to be done in terms of implementation on the supply side when it comes to land, power, water and even pushing through the consumer discretionary demand. So our take is probably in terms of expectations, the market might still run up but our take is probably the markets would consolidate between that 8500 to 9000 mark at least till the budget and probably what the budget will deliver will give a further leg up to the markets.