Mkt to see more pain in coming quarters: Experts

Benchmark indices snapped two days of rally and witnessed a sharp fall. Both indices washed out Monday's gain on account of a huge profit booking in realty, metal, capital goods, oil, banking and power stocks. Weak global cues also fuelled the negative sentiment.

The Sensex plunged 696.47 points or 6.61% to 9,839.69 after hitting an intraday low of 9,799.45. The 50-share NSE Nifty touched a low of 2919.45, before closing the day with a loss of 209.6 points or 6.665 at 2938.65. All BSE sectoral indices closed in red.

Experts on roads ahead for markets:

Sajiv Dhawan, JV Capital Services, believes that the markets still lack clarity and confidence and more importantly conviction at higher levels. People are still skeptical and scared of taking fresh long positions above 3,100 or 3,200 levels on the Nifty.

“Markets are still very fluid and they are moving 5-6% a day and so if they continue like this it is quite easy to see them slip another few 100 points. I think buying aggressively would come back in on 2,500, but again that is being countered by the selling which is there at 3,100-3,200 levels.”

According to Dhawan, investors still probably will have to be patient for another couple of weeks and hope that the markets do stabilize then.

Vijay Bhambwani, bspindia.com, said "Strictly for today and tomorrow, I would watch out the 2,850 to 2,880 band on the Nifty spot. Should it actually decline below that I think the probability of 2,675 becomes a fair kind of an event."