Correction unlikely to be deeper than 5%: Emkay Global

As Indian market is eagerly awaiting for some policy action and the parliament logjam to break, the Nifty is struggling hard to cross pass 5400. Experts feel that the market is likely to take some breather here.

Krishna Kumar Karwa, Emkay Global Financial Services also feels that the market had a decent run in the last 15-20 days and is on consolidation mode now.

In an interview to CNBC-TV18, he said, "Currently it looks like that there should be not more than a 3-5% kind of pullback. But again it will depend upon how the overseas flows remain. So far they have been very strong and despite domestic negativities if the flows continue to remain strong then we could consolidate at these levels."

However, he feels that strong foreign institutional investors (FIIs) will continue to support but the market upside is completely depended on policy action. Karvy also pointed out that liquidity will remain primary driver of the market in near-term.