Softness in markets to continue: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, says markets raising questions on how global demand is shaping up. Edited excerpts:

ET Now: Do you think that the disappointment will extend out to another day of losses? What started off as a big bang week would perhaps end as a damp squib come Friday?

Mayuresh Joshi: I think the softness in the markets is expected to continue on multiple counts. You were talking about what happens on the global markets with respect to crude. The kind of cuts or the freezing of limits in January that we have seen along with some amount f reversals but I think we are seeing markets raising questions on how global demand is shaping up specifically with US data coming. And again domestically the earnings have not been great for Q3 and are not expected to recover in Q4 as well. The capex cycle is delayed and what happens in the budget is going to be a key trigger point for the markets. So at least till the budget, my entire thesis of all these factors playing as an overhang on the markets would continue. And clearly I think the softness in the markets would continue as we will mirror global markets from a short to medium term respect.