What's fueling the sell-off in Indian markets? Gurmeet Chadha answers

economictimes.indiatimes.com:

«We will get to know in the next few days how it goes, that typically means higher yields and stronger dollar, which is against what the market had factored in. But the underlying reason is that our valuations were rich and earnings are not supporting it, that is causing and compounding the problem,» says Gurmeet Chadha, Complete Circle Consultants.

There are geopolitical events, there are elections in US, US markets are holding on, Asian markets are holding on, but India is reacting to what could happen to American elections. So, why are we pre-empting and reacting to every event in the world?
Gurmeet Chadha: It has been a combination of two-three factors. I agree it has largely been FII sell-off, I mean, probably a record number in October. Never personally seen every single trading session, FII selling and that has been compounded by two things. One, the earnings and the monthly updates we get on different sectors, including auto and high-frequency sectors, which indicate economic momentum, have been a little underwhelming.

Earnings have been a little underwhelming. And US bond yields have shot up and that technically, obviously and that has added to a rich valuation. All these three factors are obviously creating what they are creating right now in the market. So, with elections starting tomorrow, the US Fed meet maybe towards the mid to the end of the week, some of the concerns will get addressed and markets were pricing in a Trump victory. We will get to know in the next few days how it goes, that typically