Is there more market correction to come? Three veterans have their say

Ramesh Damani, Raamdeo Agrawal and Manish Chokhani, three market veterans, who have seen plenty of market cycles, bull markets, bear markets were posed with a question on Thursday that every market participant wants to know about during this ongoing market correction - What next from here? Is the market bracing itself for a further fall? Will the FII selling abate finally? Will we climb the walls of worry and eventually recover? And will the Nifty find a floor sooner or later?

The market veterans answered these questions during the CNBC-TV18 Global Leadership Summit on Thursday, November 14.

Ramesh Damani is "perfectly fine" if the market faces a time correction for the next two quarters, considering the run-up that it has seen over the last few months. From the June 4 low of 21,281, the Nifty gained over 5,000 points in the next four months to hit a record high of 26,277 on September 27, from which it has now corrected over 10%.

Damani also said that he will be watching the US and the developments there very closely as they do have an impact on the entire global markets.

Motilal Oswal's Raamdeo Agrawal tends to get uncomfortable if his research team does not tell him that earnings next year are going to grow between 12% to 15%. "I don't feel confident," he said. "I think we are a little circumspect right now, where we are earnings wise, liquidity wise," he added.

Agrawal mentioned that earnings are the biggest challenge for the market currently. When asked whether the country needs a fiscal or monetary stimulus, Agrawal said that he does not want to prescribe anything but believes that the right policy decisions will be taken at the right time. He also had an advise for investors in the market.

"Right now, this is a time to have patience and wait for the markets because the foreigners are losing patience and selling out. But they need to realise that once they get out, they have to get in, and pay the price for that entry again."

Agrawal's sentiments were echoed later in the day by Nilesh Shah of Kotak Mahindra AMC, using his Dugna Lagaan analogy, which you can read more about here.

Manish Chokhani of Enam Holdings said that irrespective of what the macros may be, there will be enough opportunities to make money. "You lose money top down," he said. Chokhani added to Raamdeo Agrawal's point of foreign institutions selling heavily, saying that when the world is in trouble, people come and sell. "But it is in that rubble where you find things that you can pick up," he said.

Chokhani also said that there will be a stronger currency, Indians will be allowed to invest overseas, the foreign selling will inevitably end someday, India will be part of more global indices and hence, he anticipates a huge flow of money to come to India.

"The amount of money to come in here is staggering. We are scared at $10 billion going out in a month. I think there will be a period when $10 billion a month will be coming in," he added.