There is no money to be made in the market: Damani

With the Sensex falling below 16,000 and the rupee hitting an all-time low of 54.32, the bloodbath is far from over. Foreign funds are vanishing from India and experts warn that it is still indicating anemic symptoms.

In such a bad scenario, Ramesh Damani, Member, BSE is worried that the market is on a downtrend on the back of disappointing news and even a modest amount of selling may push it further down.

“There is no money to be made in the market. There is a lot of disappointment and typically when the market is so infertile, a modest amount of selling can almost take it down. I think the tough period that we saw in 2010 is likely to continue for a large part of 2012,” he said in an interview to CNBC-TV18.

The Sensex has dipped below 16000 today for the first time sine January and is trading at 15,987, down 341 points or 2.1 percent over the last close. It earlier opened at a day’s high of 16,132. Persistent weakness in the rupee is also playing havoc with the sentiment even as the RBI continues to try and support the local currency.

Damani said lack of reforms and a weak macro environment are further hurting market sentiment. In such an adverse situation, Damani feels investment in equities will bear fruit since in the long-term the picture is not bleak. According to him, the market is giving premium for high dividend and good corporate governance stocks.