For Indian equity market, politics has a strong influence on the sentiment and so, it could impact the market. Although, we are seeing earnings recovery and growth, once the low base effect plays out, we may not see major upticks and the underperformance could continue, analysed Udayan Mukherjee, the former managing director of CNBC-TV18.

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Mukherjee stated that the country has been underperforming in other global markets that could continue because there are factors which are only unique to India besides things like commodity prices, trade war etc. that impact other markets. "So, one should expect more volatility going ahead", he said.

According to him, the market sentiment also depends on how the liquidity considerations play out by the end of this month, especially, the numbers of domestic institutions. "If the mutual funds need to sell to give out dividends to avoid capital gains tax and that puts some technical pressure on the market and the level of 10,100 might be difficult to hold," he said, adding that otherwise the market might trade sideways over the next few days unless we have a big global trigger.

About politics, he said that the market has started pricing around a political scenario that 2019 could be a difficult road for BJP than it was in 2014.

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First Published:Mar 19, 2018 4:15 AM IST