The Indian market moved deeper into the bear territory on March 19, with the Nifty breaking another crucial support of 7,900 for the first time since December 26, 2016.
The S&P BSE Sensex broke below 27,000 to hit a 38-month low and all sectoral indices were in the red, falling 3-7 percent.
In the face of a massive selloff triggered by the coronavirus pandemic, experts are advising investors to stay away from markets for now and avoid bottom fishing. In India, reported cases have jumped to 166, raising fears of community transmission.
“There is no point in trying to find a bottom right now. There is no approach to market and investors should sit on the sidelines. Do not engage in bargain hunting,” Helios Capital founder Samir Arora told CNBC-TV18.
Andrew Holland, CEO of Avendus Capital Alternate Strategies, warned that companies would continue facing cash flow problems despite monetary stimulus.
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“No matter how low-interest rates are, there is no cash flow to service. Companies will have a cash flow and payment problem due to COVID-19,” he told CNBC-TV18, referring to the disease caused by the highly contagious virus. Ban on short-selling won’t work in the current scenario, he added.
Sunil Singhania, founder, Abbakkus Asset Manage, said though the valuation appeared “compelling”, participants should stay away till the market stabilised.
“I haven’t seen such a market in my 25-year-long career. It is getting difficult for an optimist like me to put money in the market and we will wait until some stability returns. Removing capital gain tax should improve sentiment,” Singhania said.
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