Current market correction was long overdue: Mythili Bhusnurmath

In an interview with ET now, Mythili Bhusnurmath, Consulting Editor, ET NOW, shares her views on the markets. Excerpts:

ET Now: Where do you think the markets will go from here?

Mythili Bhusnurmath: Markets in India had gone way ahead of fundamentals. This is a correction that was long overdue, but the problem is that we are finding this kind of irrational exuberance all over the world. Stock markets cannot run ahead of fundamentals. They can be forward looking and to that extent they can run ahead, but unless growth recovers, it is going to be very difficult for markets to recover.

Given the fact that the Indian markets are driven by forex inflows, this will have an impact, not only on the markets themselves, but also on the exchange rate. That is why it becomes important for us to ensure that our markets are routed in reality. Unless the economic performance improves, we are not going anywhere.