Markets go for a dive with prospects of a bull ride

Nifty is off around 60 points from its intraday low of 9,704, trading at the 9,766 level, down by 53 points at pre-lunch hour on Friday. Sensex has also recovered marginally from the day’s low level. 
 
The markets witnessed gap-down opening on the back of heightened geopolitical tensions in the US and North Korea. Foreign institutional investors (FIIs) pulled out substantially by around Rs 2,000 crore in the cash markets during the past two trading sessions.
 
Also, SEBI’s circular to ban trading in 331 suspected shell companies disturbed the market sentiments. However, three of these companies, namely, J Kumar Infraprojects, Prakash Industries and Parsvanath Developers got their ban lifted vide an order from Securities and Appellate Tribunal (SAT). This raises some hope in the market that a few of the other suspected shell companies may also return to the ring.
 
Market participants are wondering whether this could be a good time to enter the equity market. Correction is likely to continue further, believe market experts. However, from a long-term perspective, analysts feel bullish sentiments may ride the wave.