US President Donald Trump on Friday slapped a 25 percent tariff on USD 50 billion worth of Chinese goods, as he accused Beijing of intellectual property theft and unfair trade practices, triggering a full-fledged trade war between the world's two largest economies
However, they pulled out nearly Rs 10,000 crore from the debt markets during the period under review, depositories data showed.
Domestic investors in the driving seat as inflows remain strong in April at Rs 9400 crore
Speaking to CNBC-TV18, Adrian Mowat, Managing Director and Chief Asian & EM Equity Strategist at JPMorgan, said Indian equities are still lagging behind emerging markets.
The Reserve Bank's decision not to cut key policy rates is slightly negative for Indian equities and rupee in the near term, says a Nomura report.
Speaking to CNBC-TV18, Manish Gunwani, Deputy Chief Investment Officer-Equity at ICICI Prudential Mutual Fund, said domestic cues were more responsible than global factors for the recent upmove in Indian equities.
It has been a buoyant start to the year for Indian equities. Strong domestic flows, absence of any major negative surprises in the Budget and a general lack of alternative investment options have overshadowed the worry of demonetisation delaying earnings recovery.
Asian markets were also trading weak following the sluggishness in global equities amid risk-off sentiment. Nikkei was down almost a percent on back of surge in the Japanese yen - another safe-haven play. Rest of Asia, too, was trading lower this morning.
Underweight refers to a below-average chance of matching the performance of its peers, and hence investors should have less exposure to the stock in their portfolios.
Market expert Mehraboon Irani says that he is bullish on the market and despite global issues, liquidity is intact in the market but valuations may possibly narrow down going forward.
Global financial services major Citigroup has maintained year-end Sensex target at 28,800 amid expected rise in interest rates by the US Fed post its chair Janet Yellen saying the case for rate hike was strengthening.
According to HSBC, though progress has been made on structural reforms across sectors, equities are not likely to benefit from this as they are trading at a significant premium.
Indian stocks should offer returns in the low-teens in dollar terms based on expectations of 10-14 percent growth in earnings, Goldman Sachs analysts including Sunil Koul said in a research note.
Michael Kurtz, Chief Asia Equity Strategist of Nomura says, while this will be a 'run-of-the-mill' Budget, corporate tax cut will be a positive.
Pramod Gubbi of Ambit says the market is relatively more attractive now. He advises investors to have a bottom up approach.
Michael Every of Rabobank says the macro deflationary conditions are exactly the same as 2008.
Foreign funds also stayed away from Indian equities in 2015 and invested just Rs 17,806 crore (USD 3.2 billion) in stock markets last year. In comparison, FPIs had been investing around Rs 1 lakh crore each into equities in the preceeding three years.
Geoff Dennis, head of global EM strategy, UBS is bullish on the energy sector and says he would rather buy energy than consumer staples in India
Vivek R Misra, Strategist- Asian Equities, Global Research & Strategy at Societe Generale believes that RBI is likely to cut rates in Q4 of FY15. Federal Reserve's decision of keeping the rates unchanged is likely to weigh a bit on this and that could push the rate cut a bit forward. He expects 25 basis points (bps) rate cut by RBI in Q4.
Rohit Sah of TCW cautions the next few months are going to be rocky for the market.
According to Dipen Sheth, head-institutional research at HDFC Securities, structurally nothing has changed for India despite the 10 percent odd correction. He continues to remain a buyer of Nifty at current levels.
According to Andrew Holland, CEO of Ambit Investment Advisors, 8000 can be a great entry point on the downside. He is betting on banking and industrial stocks, but asks investors to avoid consumer durables due to high valuations and IT stocks.
Declining inflation and accelerating growth is a favorable environment for equities. Inflation is falling but growth needs to accelerate for India to outperform. We believe it will, says Sanaya Tavaria of JPMorgan.
Leading the pack are Indian equities, which racked up gains of almost 8 percent in January, extending last year`s solid run.