The Indian financial markets are witnessing FPI selling after three months of net inflows as FPIs remained net buyers for three consecutive months, from June to August.
As per a report by ICICI Securities, FPI equity inflows in August 2020 so far stand at nearly $6 billion, which is close to the highest monthly number in history.
Despite the signs of deep stress in the economy, the equity market has been going higher since April. As the rally has been mostly liquidity-driven, FIIs repositioned their bets on stocks and sectors based on their outlook.
The pandemic has opened new doors to business opportunities for some of these companies, suggest experts. The companies which have gained momentum are likely to benefit the most from the COVID.
The FII-DII ownership ratio in the Nifty500 was at 1.4 times in Q1FY21, unchanged from the previous quarter, and was down from 2.1 times in June 2015
The conventional narrative is that liquidity from central banks is fuelling the market rally. But is that true?
“Foreign investors have pulled an estimated USD 26 billion out of developing Asian economies and more than USD16 billion out of India, increasing concerns of a major economic recession in Asia,” independent Congressional Research Center said in its latest report on global economic effects of COVID-19.
The bounce has taken fundamental analysts by surprise, as there has been few signs of an economic revival
There are two more companies in which foreign institutional investors from China hold a substantial stake in Indian companies that includes names like Visa Steel, and ZEE Entertainment.
The rally from the lows has been broad-based
FII ownership should not be looked in isolation when making an investment call. FIIs could be selling due to varied reasons; hence, it is not just limited to the fundamentals of the company.
The intensity in the selling was massive, at levels not witnessed in the last 10 years
Impact on retail investors of the 4 Ps which stands for Paisa, Pain, Pandemic, and Pledges amid the COVID-19 outbreak.
FIIs net sold Rs 20,908 crore worth of shares in the week ended March 20, taking total to Rs 51,243 crore in March so far. It was the biggest ever monthly outflow.
Contrary to the FIIs, DIIs remained net buyers for the second consecutive month in February.
As per a report by brokerage firm Edelweiss Securities, during the October-December quarter, FIIs were net buyers of nearly $4.88 billion in Indian equities.
The upcoming budget is the event where we can expect reforms to manifest, which will set a path for the economy to achieve this target of a $5 trillion economy over the next five years.
The trade and tariff war between the US and China has been one of the spoilers for global trade and the global economy
Has the tax cut rally run its course?
Five of the top seven companies in the Sensex which account for 45 percent of the weight have given a return of 32.8 percent over the last year and 28 percent CAGR over a three year period.
The reason lies in the less-than-stellar performance of most mutual funds
These measures should gradually improve the flow of credit and nudge up growth, analysts have said.
Signs on the ground don’t point to a meaningful growth recovery. With prices posing no immediate threat, RBI has its task cut out.
One of the aims is to direct the much needed flow of investments to the country's infrastructure sector via debt instruments.
At present, there are more bets that the market will fall rather than go higher post elections.