Expert verdict on market volatilty

New Delhi: The markets have taken a plunge on Wednesday morning on the back of extremely weak global markets.

The worst hit sectors are FMCG and Metals which are down nearly 7 per cent each.

Most experts feel that domestic markets are reacting to the fall seen in the global markets.

Here's how experts view Wednesday's turbulence.

Gaurang Shah of Geojit Financial Services: It is a global effect; investors stay invested in markets

We saw a 1,100 point knock and now this morning we have seen around 570 points knock.

Definitely, it's a global scenario, the Asian markets are down and the LME prices on the metal exchange are down.

It looks quite weak, we did see the nervousness sinking in yesterday with the kind of volumes that were happening.

The market breadth indicates that we are headed for a bit of a major correction going forward.

My advice to my clients is that for whatever you have got invested, whatever small percentage of your investible amount, stay invested. If you have a longer term horizon, possibly buy on dips.

If you are an intraday trader or a short term trader, it is better to stay away from this kind of a market because all kinds of stop losses at whatever levels would get recurred in this kind of a falling market.

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Possibly, the margin calls will trigger again because people would have thought that since the markets have stabilised a little bit and it is safe to venture into the market.

Post afternoon, we will wait to see if there is some kind of a respite coming in the market, then that would be a breather but as of now it looks bad.

Rahul Rege of SSKI & Sharekhan:

Fund outflows causing market fall.

The fall seen in the market is on account of fund outflows, which are acting at the behest of the developments in the US.

As a result, no one is willing to consume the fundamentals' related story; no one is looking at the strong corporate or for that matter GDP figures.

Kashyap Pujara of Sushil Finance:

Markets are extremely attractive in the long-term.

We are not bearish on the market, so there is no question about shorting the Nifty. We are not shorting the Nifty.

One thing is very clear from a longer-term perspective that markets are extremely attractive.

From a trading perspective, since the global situation is slightly nervous and the rupee-dollar equation is also turning adverse, I think there could be short-term pressures.