IT earnings have not bottomed out; further correction likely: Jitendra Arora

economictimes.indiatimes.com:

Jitendra Arora, Sr EVP & Fund Manager, ICICI Pru, says “we are very positive on Indian markets over a long time but we still expect that in the short term, which may be next three to six months, we can see markets consolidating around current levels. That period may get stretched if we see more election-led uncertainty coming into the markets which will start becoming a factor at some stage psychologically as we move closer to the election cycle.”Let’s talk about the broad markets first. Last week we saw the Nifty at around 19,300 around and today it was trying to come back to 19,600 levels. What is your view on the market on a long term basis? Do you expect it to be a bit range-bound right now?You asked two questions in the same flow, one is whether I expect the market to stay range-bound and also what is my long-term view.

That is where there is a little bit of divergence here in the sense that we are very positive on Indian markets over a long time but we still expect that in the short term, which may be next three to six months, we can see markets consolidating around current levels. That period may get stretched if we see more election-led uncertainty coming into the markets which will start becoming a factor at some stage psychologically as we move closer to the election cycle.What is your outlook on the FIIs which have begun selling quite relentlessly for our own markets? Is that emerging as a huge concern? At the same time, one needs to take into cognisance the fact that we are not alone in this downfall. We are seeing a calibrated fall across the globe. What is your view on the liquidity situation?So, on the FII liquidity per se, honestly I would not call it a relentless selling per se what we have seen.