New Delhi, Nov. 10 -- Supply in the market is a concern, said Hari Shyamsunder, vice president and Senior Institutional Portfolio Manager - India Equities, Templeton Global Investments, Franklin Templeton."It's not just about the aggregate quantity being sold, but the pace at which that supply hits the market, which can cause short-term dislocations."

The challenge now is the sheer volume of equity, from potential government divestments to promoter and foreign institutional investor (FII) sales, all of which are adding up, he explained. "It (oversupply) has helped cap valuations in the secondary market."

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Supply in the market is a concern. It's not just about the aggregate quantity being sold, but the pace at which that...