Market In The Red: Emkay’s Manish Sonthalia Sees Current Correction As ‘Nothing Out Of Ordinary’ Heena Ojha NDTV Profit

Manish Sonthalia, Director and Chief Investment Officer at Emkay Investment Managers, weighed in on the current market scenario, stating, “I think what we are observing is this is the first sign of copulation in the market that started on Friday, and today it is a continuation of that.”

The Indian stock market continued to face a correction on Monday, with both the NSE Nifty 50 and BSE Sensex declining ahead of HCL Tech’s quarterly results. The Nifty 50 opened 236.10 points, or 1.01%, lower at 23,195.40, while the Sensex dropped by 749.01 points, or 0.97%, to 76,629.90. Major sectors, including Nifty Realty, Nifty Oil & Gas, Nifty Auto, and Nifty Metal, were in the red, with Nifty Realty seeing a significant drop of 2.06%. Nifty IT also slipped 0.57%, reversing its Friday gains.

“It has all got to do with all known reasons, there is nothing out of ordinary that is happening, it is due to currency depreciation, weak earnings, regime change in the US, and uncertainties around the budget”, Sonthalia added.

He also noted that while the market correction is a normal phase, it could extend further, but not by much. “It is just a correction,” he said, adding, “The markets can go down another 5-7%, but not anymore.” He also dismissed concerns of a more significant downturn, stating, “I do not see the market falling below 22,000 and sustaining below 22,000 for a long period of time.”

The rupee also weakened against the US dollar, breaching the psychological level of 86 per dollar. The Indian currency opened at a record low of 86.20, continuing its three-day decline after settling at 85.97 on Friday. The rupee’s depreciation is being driven by a strong dollar and rising oil prices, with the dollar index hovering near a two-year high.

While the correction may seem concerning, Sonthalia suggests that the current market turbulence is more of a natural adjustment and not an abnormal event.

. Read more on Markets by NDTV Profit.Do not see the market falling below 22,000 and sustaining below 22,000 for a long period of time, Sonthalia said.  Read MoreMarkets, Business 

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