Evergrande crisis could become an excuse for markets to correct: Mazhar Mohammad

Indian equity benchmarks Sensex and Nifty were trading flat with a positive bias in early deals on Wednesday amid mixed global cues. Broader markets however outperformed and gained over a percent. Among sectors, most of the gains were seen in media, auto, IT, realty and PSU Bank indices, while financial services index was under pressure. Mazhar Mohammad of Chartview India spoke to Money9 to share what’s the outlook on markets going forward.

“Not reading too much into the recovery in markets seen yesterday. Keeping crucial levels on in the index in mind. If the Nifty breaches 17,250 on the downside then one could even see 16,500 on the index, investors should remain stock specific in the current markets”, he said

He also believes that the China’s Evergrande Group, which is dealing with a towering debt of more than $300 billion has set off panic in global markets. The group missed interest payments to two of its largest bank creditors leading to stock price crash. He said that this could be an excuse for a sell off in the market and correction which is overdue and one may need to watch out for developments as to whether the bailout happens to prevent a ripple effect.

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