While there is speculation that funds are moving from India to China, the data don't support this hypothesis.
FIIs offloaded financial, construction, and FMCG stocks. They were net sellers of financial services shares, pulling out Rs 10,000 crore from the market in February, after Rs 30,000 crore a month back
FII outflow from financial stocks was Rs 3,549 crore during September 15 to 30 and Rs 1,231 crore during October 1 to 15. As of June, FII ownership in Industrial stood at 8.2 percent, about 1.8 percent higher than industrials weightage in MSCI India
The rupee is again nearing all-time lows due to month-end dollar demand, rising crude and continuous capital outflows due to FII selling
FIIs pulled out over $29 billion in 10 months of sustained selling of Indian equities with June recording the peak at $6.4 billion. But in July, with the foreign investors turned net buyers. When read along with other signals, it indicates a bottom-out in sell-off, says a BofA report
This year, the Indian currency has already declined 5% due to continuous dollar outflows from local markets. Foreign investors have sold equities worth around $27.22 billion, so far, this year
Sachin Shah, fund manager, Emkay Investment Managers, says Bihar elections in October will have only a sentimental impact on the markets, but the real focus will be on earnings.
According to Amit Dalal, executive director at Tata Investment Corporation, the top worries for the market right now are weak monsoon, lack of government action on policy and foreign outflow.
Abhjit Chakraborty, Sr VP- Institutional Equity, Fortune Financial expected that with the GAAR issue kind of postponed, market should have rebounded but the fact that even after that incident the market has seen a sharp fall doesn't auger well.
Sanjay Sinha, founder of Citrus Advisors tells CNBC-TV18 that the time has come for investors too look at increasing their exposure in rate sensitives like banks, auto and infrastructure.
UR Bhatt of Dalton Capital Advisors says that the positive inflow from FIIS has lent confidence that the aggressive selling could finally be over. But market is likely to remain range-bound, he says.
RBS Asia Securities is expecting a low gross domestic product (GDP) than the street expectations. Parul Saini, ED, RBS Asia Securities Singapore says that Indian economy is expecting a growth of 8%.
Religare Group CEO Shachindra Nath, told CNBC-TV18 about his expectations from the Budget and what investor confidence and sentiment, both domestic and international looks like in the market right now.
Dr Andrew Freris, senior investment strategist at BNP Paribas Wealth Management, in an interview with CNBC-TV18’s Latha Venkatesh and Anuj Singhal, compares India with other Asian markets and talks about how fund flows have been affected in the movement towards developed markets.