Strong domestic investor appetite likely to buffer market from steep dips, says Ashwini Agarwal

Ashwini Agarwal, Founder and Partner at Demeter Advisors believes that all the elements needed for a sharp market correction are in place at the moment. However, as long as there is no imminent risk to the domestic investor appetite, the possibility of a sharp sell-off is highly unlikely.

"There are all the elements in place for a sharper correction but whether it will happen totally depends on domestic investor sentiment. There are currently robust fund inflows, whether through mutual funds or directly," he told CNBC-TV18.

In the financials space, he holds the view that there is currently no immediate cause for concern with respect to banks' earnings. However, the rising proportion of unsecured loans could be a worry at some point if the economy slows down.