After turning net buyers of Indian stocks on 18 March for the first time in a month, FIIs have actively purchased in four of the last five sessions.
Active allocation shifts require investors to jump in at the right time to grab returns, a hard ask
Jefferies' Chris Wood says India is the best long-term equity market in the world, and that the bull market is nowhere near ending due to a combination growing retail participation, relentless fund flow and robust domestic demand.
Apart from five sectors, which constitute one-third of the overall market, all others are trading at a premium to their historical long-period averages, MOFSL noted
Chris Wood explains that Indian equities are under owned among emerging market active funds since 2014
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said rising rates in the US might lead to more capital outflows from emerging markets including India.
The global environment continues to be complex, which is why Sommaiyaa expects there will be downgrades and earnings growth will be scaled down to low double-digits instead of 15-16 percent.
The vicious circle of selling is likely to be replaced by a virtuous cycle of buying, and even foreign institutional investors are starting to take note of Indian growth and returning, Damani said.
Last week, the Sensex fell 952.35 points or 1.59 per cent.
FPIs turned net buyers in July after nine straight months of massive net outflows, which started in October last year.
SGX Nifty was trading at 8708.00 down 8.50 points.
The Japanese financial services major, Nomura, is "underweight" on India and said one of the biggest concerns for the Indian market is high valuations.
Overseas investors pumped in a little over Rs 2,100 crore in the Indian equity markets in December, making it the lowest investment in 10 months, primarily on account of profit booking.
Foreign portfolio investors extended their buying streak to a 15th straight day totalling over $1 billion, helping BSE Sensex rise to record high on Thursday.
JPMorgan AMC continues to be bullish on Indian equity market. “We are still seeing relatively good inflows into India. Though CPI inflation remains a concern, but the fall in WPI data was shot in the arm. The fall in gold and crude price will also be of big help to India,†Geoff Lewis of JPMorgan AMC said in an interview to CNBC-TV18.
Overseas investors poured more than Rs 10,000 crore into the Indian equity markets in July - the highest monthly inflows in five months - sidelining concerns over weak monsoon, slowing economic growth and a high interest rate regime.
As the euro rate slides, its correlation with the Sensex might rise and directly affect Indian equities.