“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 shareholding pattern of Mar-20 for around 160 of the top 200 stocks (accounting for 70% of the top 200 market cap) gives a flavour of the extent of FII selling that has happened during the crash in Feb/Mar-20.
Data from the last 10 years suggest that bulls got an upper hand seven times in the month of April. Nifty50 closed in the green in 6 out of the last 10 years, data from AceEquity showed.
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.
Impact on retail investors of the 4 Ps which stands for Paisa, Pain, Pandemic, and Pledges amid the COVID-19 outbreak.
Several large-cap names are now available at distress valuations, investors should construct a portfolio of these names, says Jain.
Effectively about 10-12% of the F&O stocks would be impacted. For most other stocks, even if MWPL are restricted, open interest is far lower to have any meaningful impact.
Overseas investors pulled out a net sum of Rs 24,776.36 crore from equities and Rs 13,199.54 crore from the debt segment between Mar 2-13, depositories data showed.
Sectorally, carnage was visible in capital goods, metals, energy, industrials, power, and banking stocks.
A technical bounce back might be on the cards, suggest experts. However, rising fears from Coronavirus outbreak are a big risk for the market
Post-2015, as the markets have started trading at lower volatility levels of 10 percent, the sharp panic levels in volatility have seen top formation near 30 percent.
The announcement comes after the tax haven was put on the ‘grey list' of Financial Action Task Force (FATF) -- an inter-governmental policy making body that sets anti-money laundering standards.
Specific steps that were brought on for the sovereign funds, that seems to be very good as it aims to provide the much needed longer-term capital to long gestation projects like infrastructure.
FIIs have 60% net short positions in index futures and these shorts may help in the short-covering rally if something major positive comes in the Budget.
In fact, ask RBI’s senior officials. In private, they have said that they had repeatedly asked the government not to switch off mobile telephones, messaging and the internet.
FIIs have been quick in spotting opportunities across sectors such as telecom, finance, healthcare, IT, insurance, FMCG and agri stocks.
Entry into the global bond market would amplify investment inflows for India by as much as $50-125 billion
A close look at the list shows that FPIs are betting on a recovery in the small & midcap space, even though most of the stocks have corrected in the last one year.
During the meeting, the regulator found that "the participants were keen on emerging areas such as REITs (real estate investment trusts) and InvITs, (infrastructure investment trusts) which have more than $10 billion asset size as on today".
It looks like FPIs are in a risk-off mode. Equity indices of US, Euro and Emerging market have been flat-to-negative in the last three months.
For retail investors, it is important to focus on longer term horizons, says Mihir Vora, Director and CIO at Max Life Insurance.
Gold entered in trending wave, which could last up to $1700 in the coming few months and Dollar index is trading above 98, indicating at money is flowing into safe heavens.
Metals are under pressure due to US-China trade war issues, says Umesh Mehta of SAMCO Securities
There are as many as 22 stocks on BSE where FIIs hold 40-70 percent stake. These include UPL, NIIT Technologies, HDFC Bank, Bharti Infratel, ICICI Bank and Mindtree
Jerome Anthony gets in conversation with Moneycontrol Editor Santosh Nair to find out what happened in the market this past week, the key business events and what should investors track in the coming week.