Dear Reader,
The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.
Fundamentals and data points are the cause that results in funds flowing in and out of markets. While rising bond yields and the growing tension in the Middle East have caused anxious moments, these actions are visible in the withdrawals of funds.
Foreign portfolio investors (FPIs) dumped Indian stocks worth over Rs 25,000 crore in October, the second highest in 2023. US Treasury yield touching the 5 percent mark triggered the panic button, which led to a fresh bout of selling. Emerging markets are always the first to witness withdrawals and the last to receive inflows.
In the current environment too, emerging market funds are seeing regular withdrawals.
According to LSEG (London Stock Exchange Group), investors pulled out a net $7.46 billion from global equity funds during the week to October 25, a streak of six consecutive weeks. Even developed markets saw huge withdrawals.
European equity funds saw $7.39 billion of investment leave their shores, the biggest amount since September 28, 2022. The US markets saw an outflow of $2.69 billion.
Funds are flowing out of equities and into bond funds. Government bond funds received $5.02 billion, the biggest weekly inflow in seven months.
After a 21-week-long selling streak, precious metal funds saw inflows of $411 million, indicating an increasing risk-averse environment.
Data from 28,654 emerging market funds showed investors withdrew $2.55 billion from EM equity funds, extending an 11-week streak. EM bond funds also remained out of favour for the 13th successive week with $875 million in net disposals.
However, Indian markets have a cushion of domestic investment with a strong SIP inflow every week, this could prevent it from being among the worst-performing emerging markets. Incidentally, among the top-performing markets in the world in October 2023 was Karachi, with a gain of 12.25 per cent, which sums up the madness on the Street.
Investing insights from our research team
Larsen & Toubro: Improving fundamentals, strong earnings visibility to support the stock
GAIL: Pick-up in recovery makes it attractive
UPL Q2 FY24: A quarter where the bad turned ugly
What makes Star Health a good bet despite mixed set of earnings?
Navin Fluorine: Marred by delays, but still not off the radar
SBFC Finance: Riding high on MSME credit growth cycle
Vesuvius India: Capex to drive earnings growth
What else are we reading?
Narayana Murthy’s call for 70-hour workweek: Research shows longer hours unproductive
Manufacturing PMI weakens in festive season
India’s bond market finally has a product tailored to investor demand
Chart of the day: Cry 'Havoc' and let slip the dogs of war
Is creating a High-Risk mutual fund category a good idea?
Can the CEA illuminate the power path?
Sheikh Hasina faces toughest political challenge in her 14-year rule in Bangladesh
Ashok Vaswani and a high-wire act known as Kotak Mahindra Bank
The economic consequences of the Israel-Hamas war (republished from the FT)
Assembly Elections 2023: BJP dares Congress to bat on its Ram Mandir poll pitch
Supporting a Palestinian state doesn’t negate Israel's right to exist
US 10-year bond yields touch 5%: What got it here, what lies ahead
US Department of Justice’s antitrust case against Google isn't going well
US stimulus programme shows how a strong safety net helps the whole economy
Personal Finance
Not disclosing foreign assets to taxman can cost you dearly
Tech and Startups
Adoption of AI and automation will require 16.2 million Indian workers to upskill by 2027
Technical Picks: Apar Industries, Trent, Gold mini, Tata Motors and Eicher Motors (These are published every trading day before markets open and can be read on the app).
Shishir Asthana Moneycontrol Pro
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!