SENSEX NIFTY
Feb 22, 2013, 09.22 AM IST | Source: CNBC-TV18

FII flows - biggest risk to market: Ridham Desai

Ridham Desai of Morgan Stanley fells FII flows are the biggest risk to the market. "They have crossed 2 percent of market cap on a 12-month basis, which has historically been a warning sign for prospective equity returns," he added.

Ridham Desai

MD & Head of India Research, Morgan Stanley

Expertise : Equity - Fundamental

More about the Expert...

Here are experts equity calls for the day on how the markets are expected to trade:

Ridham Desai, Morgan Stanley: FII flows are the biggest risk to the market. They have crossed 2 percent of market cap on a 12-month basis, which has historically been a warning sign for prospective equity returns. The trigger for a reversal of flows comes from a global risk off which is hard to time. However, there are still several fundamental and technical factors that favour a market rally in the coming 3 to 6 months in our view.

Chris Wood, CLSA: Stubborn inflation, the lack of growth and a dodgy fiscal situation, highlight the vulnerability of the rupee and the related need for capital inflows. Our Overweight on India is predicated on the view that "risk on" will continue for now globally. But when the mood changes, India will be very vulnerable in dollar terms unless, there is more visibility by then on a renewed investment cycle.

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