We may see a time correction or a price correction in short term: Sridhar Sivaram

economictimes.indiatimes.com:

«So, for the US, I do not see it going below 2, at least in the next 6 to 8 months. And even for us to go below 4, I do not see it almost for a year,» says Sridhar Sivaram, Enam Holdings.How would you paint the scenario for us?Our broad view for the market is that in the short term, we could see a time correction or maybe a price correction more from the fact that the macro data, both in the US and in India, especially on the inflation side, is still looking a bit sticky. So, for the US, I do not see it going below 2, at least in the next 6 to 8 months.

And even for us to go below 4, I do not see it almost for a year.Were markets betting on a rate cut?I do not think so. I am not very sure if the market is betting. So, I think we are betting on a status quo.

Unless this continues and RBI tightens, not in terms of rate, but in terms of liquidity, that could have some impact. But it does have an impact, I mean, if your interest rates are higher for longer, then it has an impact on the market. So, we see it could be a time correction or it could be some pockets where excesses are there we could see some correction there.

Worry will be more what happens in the US because just seven stocks are holding the market there. The broader market has not done very well there. And the more you read how credit card interest rates have gone up, mortgage rates are almost 7, 7.5, very close to where India is right now and how that plays out.

Those will be the larger worries. I am not an expert there but whatever I read, it looks like it is a space to watch.So, if the US inflation is a concern, which in a sense is the biggest moving part, yields are at 4%, the peak yield in 2022 was 4.4. Then why do you expect markets will be range bound