High domestic inflation and rising crude prices remain a concern, he said. "Global concerns are receding and will only have a short-term impact. We are seeing uncertainty, and not seeing a clear direction for the market in near-term."
Shah said he is surprised by weakness in the rupee. "We were expecting it to firm up on account on inflation control measures. However, money market flows, and payments for oil allowed RBI to weaken the rupee, which is likely to appreciate after seeing some more weakness."
He advises investors to stay away from textile companies. "Threre is not much business potential in textiles, as companies are suffering from cost pressures."
Tarini Vaidya, Country Treasurer, Centurion Bank, said weakness in the rupee was started off with oil buying and kept depreciating further on momentum.
She sees more declines in the Indian unit. "It can go down to Rs 42 per dollar on Friday or early next week and can depreciate up to Rs 42.50 per dollar, if it slips below Rs 42.2 per dollar in the near-term."