US interest rate outlook, slow uptick in domestic economy keeping investors cautious: Dhiraj Agarwal

In a chat with ET Now, market expert Dhiraj Agarwal shares his view on why the market is showing choppiness. Excerpts:

ET Now: Quite clearly, the markets stumbled from the day the RBI actually cut policy rate. It seems like a near-term top has already been made and that market is quite nervous ahead of the the US FOMC meet. How are you mapping the market mood?

Dhiraj Agarwal: True. There is a lot of nervousness and for good reasons. The US Fed rate hikes is one risk . In addition, the domestic economy is not showing any signs of pickup at the ground level, despite the fact that what the government is doing from a long term point of view is all correct. Eventually it will show up in the investment cycle and GDP numbers. But, there is a bit of a stress push and pull.

While the long-term picture is easy to take a bullish call, from a short-term perspective, it is looking a slightly stressful. That is why the market has become very volatile and choppy in the last two or three months.