The Hindu Business Line : Voices on market crash

Basically the Indian market was getting very frothy and overheated... . A lot of activity seems to be driven by leveraged domestic investors, being spooked by global markets and unwinding their leverage positions. If that analysis is correct then what has been going on is very healthy, because by definition it will be taking some of the froth out of the market. So we would rather feel heartened that the market has come away from its peaks.

PETER DOUGLAS

GFIA, Singapore

While India remains a pretty good story, there was a fair amount of hype that was getting built in. There are only two views on India; one is bullish and the other is super bullish, which tells that people were just not factoring in any kind of downside.

RAJEEV MALIK

JP Morgan Chase Bank

India remains attractive. This whole sell-off has not much to do with India itself as the Indian economy is doing well and you still have a very long growth, credit creation in the banking system and liquidity in assets. It is more of a psychological thing and of course there are margin calls and everything that are associated with it.

HANS GOETTI

Director, Citigroup Private Bank

There is a fair chance of this market going into four figures. Post-11,000, technical triggers had just not been with the price action and that is when we saw a divergence developing and therefore we started off with a profit booking call on the markets. We are still maintaining our medium target for the Sensex at 9,000, which we initiated 3-4 weeks back. Once we are at our short-term target, we need to review the situation.

GAUTAM SHAH

Technical analyst, JM Morgan Stanley

I think the poison has definitely gone out, that means the poison was undue optimism. People were coming into the market thinking every week one can hope to make 2-3 per cent and that was the difficulty that has definitely gone out of the system.

VALLABH BHANSALI

ENAM Consultants

We think there is no reason to panic at all. In a way, it is great that this correction is deep and sharp. It will keep interest alive in the market as opposed to sort of a slow drip selling, which could have happened over an extended period of time.

AMIT CHANDRA

MD, DSP Merrill Lynch

As per our policy and view on the market, we have always gone by the fundamentals and not by any temporary news or rumours. We have been buying in the last few days and even this morning we bought before the market closed and also as the market reopened (after suspension). We are looking at the market and continuing our activity accordingly.

SUSHOBHAN SARKAR

ED-Investment, LIC

Not at all. I have also heard some rumours, but the fact is that in the last five-six days, when the market went through this carnage, we have seen net positive flows. (On reported redemption pressures).

PANKAJ RAZDAN

CEO, Prudential ICICI MF