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

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
Post a Comment
Read more

Check Chemcon Speciality Chemicals IPO allotment status in four simple steps

Equity shares will get credited into the accounts of eligible investors by September 30 and the listing of equity shares will be on October 1, 2020. Chemcon Speciality Chemicals, the manufacturer for pharmaceutical and oilfields industries, is expected to announce the basis of allotment early next week. As per the schedule provided by the company, the finalisation of the basis of the allotment will be done by September 28 and the initiation of refunds or unblocking of funds from ASBA account will take place on September 29. Equity shares will get credited to the accounts of eligible investors by September 30 and the listing will be on October The IPO comprised a fresh issue of Rs 165 crore and an offer for sale of Rs 153 crore by promoters. The company will utilise fresh issue proceeds for expansion of manufacturing facility, working capital requirements, and general corporate purposes. Chemcon manufactures specialised chemicals, such as Hexamethyldisilazane (HMDS) and Chloromethyl Iso...
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more