Skip to main content

FIIs remain bullish on Indian market; trend likely to sustain, say experts

While MSCI weight remains a factor, strong September quarter earnings, improving macroeconomic factors and weakness of dollar index are also signalling FII inflow into the Indian market may sustain.

Foreign institutional investors (FIIs) have been on a buying spree in the Indian market and the trend may continue for days to come, say experts.

In the cash segment, FIIs pumped in Rs 14,537.40 crore into the Indian market in October, data available with Moneycontrol showed.

The bullish trend continued in the current month too as FIIs have pumped in Rs 13,399.41 crore into the Indian market in the month of November so far.


"By the end of this month, India's weight in MSCI will go up. That is supposed to cause an inflow of about $3 billion. This month will be good as far as inflows of FII is concerned," Samir Arora, Founder & Fund Manager, HeliosCapital told CNBC-TV18.

Morgan Stanley Capital Investment (MSCI), a leading provider of research-based indexes and analytics, will tweak the foreign ownership limits for India stocks in its global indexes from December 1, a move that could see passive inflows of $2.5 billion into the country.

"We will implement changes in foreign ownership limits in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi-Annual Index Review (SAIR) at the close of November 30, effective December 1, 2020," MSCI said in its statement.

While MSCI weight remains a factor, strong September quarter earnings, improving macroeconomic factors and weakness of dollar index are also signalling FII inflow into the Indian market may sustain.

"Management commentary has been very positive across sectors which is positive. Besides, improving macro is also expected to keep the market attractive," said Pankaj Pandey, Head of Research, ICICI Securities.

Another factor is that market expects more correction in the dollar index if Joe Biden becomes the President of the US.

"There is a general view that if Biden becomes the president, there will be more correction in the dollar index which will help flows coming into the emerging markets," said Rusmik Oza, Senior VP (Head of Fundamental Research) at Kotak Securities.

Now, the US Fed will be in focus. Bond yields, dollar and rates may remain lower which will help emerging markets," Oza added.

On the front of COVID-19 cases, India has done better in comparison to most countries as the mortality rate in the country remained low and the recovery rates were high.

"India did see cases rising but the good part is that it seems some bit of herd immunity is building in here as we have been exposed to the virus. In this case, India could stand out," said Oza.

Oza also pointed out India's economy is showing signs of improvement despite lesser stimulus. However, the body language of the government has been ensuring that it will take measures to keep the economy up and running.

This also seems to have given confidence to foreign investors.

A lot of factors, including better-than-expected quarterly numbers, Fed's softer stance and improving economy, appear to be playing in favour of Indian markets. Analysts are of the view that the Indian market is in a sweet spot.

Source- Moneycontrol.com

Comments

Post a Comment

Popular posts from this blog

Ashoka Buildcon share price up 4% on bagging 2 NHAI projects

The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Ashoka Buildcon share price added over 4 percent in early trade on September 8 after the company emerged as the lowest bidder (L-1) for the two NHAI projects. The aggregate quoted value of the projects is Rs 1,390 crore. The company had submitted bids to National Highway Authority of India (NHAI) for the project of four laning of Arra h to Pararia section of NH-319(Old NH-30) in the State of Bihar under Bharatmala pariyojana Phase -1 on EPC Mode (Package-I) and Four laning of Pararia to Mohania section of NH-319(Old NH-30) in Bihar under Bharatmala Pariyojana Phase-I on EPC Mode (Package II). At 09:23 hrs Ashoka Buildcon was quoting at Rs 70.60, up Rs 2.40, or 3.52 percent on the BSE. The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Currently, it is trading 44.8 percen...
Post a Comment
Read more

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Info Edge share price gains after Q1 profit surges 149% YoY

The company reported consolidated net profit at Rs 93.66 crore which surged 149 percent as compared to Q1FY20 when it reported loss of Rs 190.91 crore. Info Edge share price gained over 2 percent in the morning trade on September 8, a day after the company declared its Q1 results. The company reported consolidated net profit at Rs 93.66 crore, which surged 149 percent, as compared to Q1FY20, when it reported loss of Rs 190.91 crore. The net profit margin in Q1FY21 came in at 32.86 percent which jumped by 92.58 percent YoY. Consolidated net revenue in Q1FY21 stood at Rs 285 crore, which fell by 10.85 percent YoY from Rs 319.7 crore in Q1FY20. Its EBITDA stood at Rs 104 crore in Q1FY21 which jumped 16.62 percent YoY. The stock price gained 62 percent in the last 1 year and was trading at Rs 3,370.35, up Rs 78.45, or 2.38 percent. It has touched an intraday high of Rs 3,400.00 and an intraday low of Rs 3,363.05. According to Moneycontrol SWOT Analysis powered by Trendlyne, F...
Post a Comment
Read more