Markets posted their second consecutive weekly loss this week with Friday's sell off leading to a 1 percent weekly fall in the Nifty. However, the PSU bank index outperformed to help lead the gains on the Nifty.
Andrew Holland, CEO of Avendus Capital Alternate Strategies believes that the markets could see a 5-10 percent fall as markets digest where interest rates are headed.
He said, "The bond yields are telling us something and the alarm bells are ringing. In US the growth stocks are taking it on the chin as yields go higher. Bellwether stock like Tesla is down 10-12 percent so far this year. So if you get that kind of fall from growth stocks globally, then it will affect the Indian markets and you could see a very quick kind of a move to risk off trade. I expect a 5-10 percent kind of a fall that you could see as markets digest where interest rates are really going. The central banks will keep rates lower for longer but the markets will start to work out when they are going to increase rates and that is why you are seeing these falls in the market globally."
Rohit Shrivastava, Founder & Strategist at Indiacharts.com said, "The focus has to be stock specific. Even when the correction started we saw the metals and PSU stocks do well and those two sectors will remain on fire because both of them are showing very strong trends. So every time you see a decline in those sectors, you will see buying come in again and again."
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