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.

Also Read
FII dependence fuels worry, market may dip further
Bull's eye: Buy Shriram Transport, Wockhardt; short HDIL
Stocks in news: Gitanjali, Hero Moto, Spanco, Gujarat Gas

ADS BY GOOGLE

Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Arvind Kejriwal

1711.96 1.85 0.11%

35128

Bought today

23053

Sold today

0.36%

User holding

video of the day

Chandra says satisfied with TCS' FY14, FY15 to be better

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.