Market may go back to June lows but India will outperform China: Samir Arora

Global markets are under pressure after the US Federal Reserve Chair, Jerome Powell's hawkish comments at the Jackson Hole Symposium. The Indian benchmark, Nifty50, also opened around 1.5 percent in the red and at the time of publishing was down 1.2 percent.

Speaking to CNBC-TV18, market veteran, Samir Arora of Helios Capital, analysed the near-term market trajectory and said that things may be headed towards the June 17 low when the Nifty hit 15,183. However, the silver lining is that the Indian market is likely to outperform China and the United States.

“India most probably will outperform China, US,” said Arora, "We are outperforming and we will again continue to outperform. But I don't think it will make more money from here for the next three-four months. And maybe we give back nearly all of it... Generally, we can only be happy that India most probably will outperform China and US because you can see some specific even beyond inflation issues, although maybe the US is mostly inflation,” he said.

Indian equity benchmarks gave up most of their intraday gains in a choppy session on Friday, as Dalal street entered a new monthly derivatives series. Gains in metal and PSU banking stocks were offset by losses in FMCG and private banking names.

According to Arora, the market may easily go back 5-10 percent.

The three main US indices tanked on Friday after Fed Chairman Jerome Powell's speech at the annual Jackson Hole symposium signalled that the US central bank will keep hiking rates to tame inflation, denting nascent hopes for a more modest path of policy tightening.

The S&P 500, the Dow Jones and the Nasdaq Composite finished 3-4 percent lower.

“The markets were enjoying and saying that things are over and it has peaked and therefore it is on the way down but they are saying it is not enough for inflation to have peaked but for us to see that it is going to 2 percent. In the long-term, they may have to change this 2 percent but not today,” he said.