Slowdown not limited to automobile sector, says Nepean Capital’s Gautam Trivedi

“Year-to-date we have seen a lot of money coming into the market but post-budget, especially the issue on extra surcharge on foreign portfolio investors, (FPIs) has got the FPIs upset; they have sold month-to-date $2 billion and there isn’t lot more coming if the government doesn’t relax the surcharge on the capital gains," he said.

“The non-SIP money is negative and that shows there is fatigue in the market from traditional investors into mutual funds and as a result, I am getting concerned about where this market is headed,” Trivedi added.

Taking about Q2, he said, “People are baking in the next two quarters being difficult for the Indian economy and the signs are all over.”

On sectors front, Trivedi said, “Our portfolio at Nepean Capital is significantly biased towards consumer space but I see the market still correcting and the correction will continue for at least another few months subject to of course the government not changing their stance on the FPI.”