Speaking to CNBC-TV18 on the sidelines of Ambit India Access Conference, Mukherjea said that there‘s a consistent pushback from investors that Indian stocks are aggressively priced. “We need to see some pullback from Indian market to see FII money aggressively into India,†he said.
Foreign institutional investors have bought more than Rs 1,700 crore worth of shares last Friday, when the Sensex rallied 275 points. So far in March, they made purchases of more than Rs 12,000 crore while domestic institutional investors sold nearly Rs 8,000 crore worth of shares.
The government has tabled the mid-year economic review in the Rajya Sabha today. In the review, it has pegged FY14 GDP growth at 5 percent, expecting economic recovery to pick up in coming quarters. It feels the process of fiscal consolidation is broadly on track.
Investors will continue to buy good quality stocks. "All the investors are not animals of reforms but are animals of returns, when the market is right. So, I do not think investors are going to dump these good quality stocks of India and flee India in mass" said Ajay Srivastava.
The larger concentration of the FII money seems to be in the midcap consumer stocks. Jubilant FoodWorks, Marico, Godrej Consumer lead the race in terms of FII ownership
Indian equities saw a decent run-up despite declining foreign fund flows and disappointing corporate earnings. The market has lost steam and is now headed for either a consolidation or some mild correction, believes UR Bhat, MD, Dalton Capital Advisors.
As of now, the volatility was taken for granted for the day and nothing has changed, says Sukhani.
We have had two big series that we have put behind us. And the underlying trend, according to Nirmal Jain of IIFL is still bullish.
Nirmal Jain of IIFL feels the markets may drift lower on FII concerns. According to him valuations will become attractive and FII money will return only if inflation eases and political situation stabilises.