A morning walk down Dalal Street | Don't sell at current level, market may see relief rally

Indian markets fell for the sixth consecutive week to record its largest one-day fall since August 2015.

For the week, Sensex lost 5 percent while Nifty saw an erosion of 5.6 percent. The market cap of BSE listed companies saw notional wealth erosion of over Rs 8 lakh crore in just one week. Not to forget, rupee hit a fresh low against the US Dollar at Rs 74.23/USD and now most experts are penciling a number close to Rs 75/USD in FY19.

Foreign investors have pulled out over Rs 9,300 crore (USD 1.3 billion) from the Indian capital markets in the last four trading sessions on unabated fall in rupee and rise in crude oil price. The latest withdrawal comes following a net outflow of over Rs 21,000 crore from the capital markets (both equity and debt) last month. Prior to that, they had put in a net amount of Rs 7,400 crore in July-August.

Three crucial factors will play very important role this week: movement of rupee, crude oil prices and earnings from India Inc. Another thing to watch out today is the new kid on the block.

The Non-banking finance company Aavas Financiers is set to debut on the bourses on October 8. The final issue price has been fixed at the higher end of the price band at Rs 821 per share. The Rs 1,734-crore public issue managed to garner 97 percent subscription during September 25-27.

Expensive valuation is one reason behind the conservative comments from experts. Most experts advise investors to exit on the listing day itself, even if it lists below Rs 800 per share, as it looks overvalued at the current juncture. The best time to enter the counter is at 2-3.5 times book.