Market pullbacks, but experts still maintain bearish tone

23 Jun 2011

The Indian markets demonstrated some much needed resilience by clocking a smart pullback in the face of global weakness.

The Nifty climbed back above the 5,300 mark and closed with gains of just over 40 points. The Sensex too gained just over 1% to close at 17,727.

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However, experts still maintain a bearish tone; say investors' mood is still pessimistic.

Dhiren Sarin, Chief Technical Strategist - Asia-Pac, Barclays Capital said the psychology is still quite bearish for equities in general and even for oil markets.

Nilesh Shah, Managing Director and CEO, Envision Capital said although the valuations of Indian equities have become attractive, but investors' mood is still pessimistic. ''The Nifty may break its 5,200 lows, if Reserve Bank of India (RBI) continues to raise policy rates,'' he added.