So far in 2019, India has been one of the highest recipients of foreign flows among Asian and Emerging Market (EM) economies
While discount brokers have managed to grow at a rapid pace, they have not been successful in capturing substantial market share in the above-40 age category.
While divestment through IPOs saw an over 90 per cent drop as compared to the previous financial year, the exchange traded fund (ETF) route proved to be a shot in the arm for the government, reports Sundar Sethuraman.
Experts say foreign investor sentiment was bolstered by the US Federal Reserve's decision to go slow with interest rate hikes and hopes of political stability.
Global funds have pumped in over Rs 38,000 crore (about $5.5 billion) into domestic equities since February 20, helping the Sensex rebound 2,671 points, or 7.6 per cent, from its 2019 low.
While three of the top five FPIs - Capital, Government of Singapore, and Vanguard - have seen their investment value more than triple, India's benchmark indices have risen just 70%.
The mid- and small-cap indices had a dream run between January 2017 and January 2018 - zooming 48 per cent and 56 per cent, respectively.
In 5 years, the AMC has clocked a growth rate of 40% with its AUM up nearly 4 times.
'Investors need to find out how the FMP's assets are distributed and ensure the investments are in high-quality names.'
While the fresh issue portion of IPOs has been going down over the years, this financial year has been abysmally low at only Rs 2,663 crore, 82 per cent lower compared to the last financial year.
The weakness in the rupee and broader markets has led to evaporation in the market cap.
Five to six issues may hit the market if Chalet Hotels's IPO is successful and if there are no negative surprises in the Union Budget on February 1.
'IPOs not clicking is cause for worry,' says Sebi chairman.
MFs have benefited from a shift to financial assets from physical assets like real estate and gold.
About 24 fund houses saw a decline in their debt AUMs in the past one year.
Automobile company Tata Motors, metals and mining major Vedanta, oil marketing firm Bharat Petroleum Corporation (BPCL), private sector IndusInd Bank, and two-wheeler major Bajaj Auto have witnessed their market cap slip below the Rs 1-trillion mark this year.
'... Whether an incumbent is voted back or a coalition forms a new government except for a temporary disruption for a few weeks.'
'The years after the financial crisis of 2008 were tough for brokers as volumes dwindled and retail investors stayed away.'
So far, nine companies have raised Rs 17,860 crore - nearly three times of last year's tally - by way of rights issues.
After a sharp sell-off in the past two months, overseas investors were once again seen turning bullish on Indian equities. FIIs bought shares worth Rs 63.5 billion in the past five sessions, their highest weekly investment tally in many months.
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