Investors should stay away from markets till inflation cools down as they may fall by another 5-7 per cent, feel analysts. “The issue of inflation isn’t finished yet. I expect the market to fall by another 5-7 per cent,” said Alok Vajpayei, Managing Director, Dawnay Day AV Financial Services.
The gloomy outlook for markets stems from expectations of further hike in interest rates by the RBI and its possible negative impact on the economy and on India Inc. “We do not expect the first and second quarter results to reflect the changes in the macro economic scene. If at all the inflation settles down by September, then even the third and fourth quarter may not be hit very hard,” said Phani Sekhar, Fund Manager at Angel Broking.