“It (reaction to PM’s comments) is a knee-jerk reaction,” said Gaurang Shah, vice president, Geojit BNP Paribas. “The fact that we have broken certain levels since Brexit day low, could be spooking markets further.”
Market observers say that Indian markets are likely to remain dull this week in the absence of any major triggers and most global fund managers being on year-end holidays. With derivatives trade expiry this Thursday, the markets are also going to remain volatile.
Market expert Ajay Bagga said that any government announcement after the December 30 old note deposit deadline would be a trigger for the market. Many global brokerages have cut their estimates of GDP growth for Indian economy after the demonetisation was announced on November 8.
