Analysts are bullish on consumption and investment themes.
Switzerland-based bank Credit Suisse said on Tuesday it expects the Bombay Stock Exchange's 30-stock barometer Sensex to touch the 22,000 mark in 12 months.
The improving earnings and economic outlook has titled the scales back in favour of Indian equities this year, reports Pavan Burugula.
Global events will continue to be in the limelight, besides domestic policy.
Thus far in 2017-18, FIIs and MFs have invested Rs 198.91 billion and Rs 1,119.49 billion in the Indian equity markets. Of this, around Rs 152.46 billion has come in January alone.
At the start of 2016, HDFC Bank, Infosys, ICICI Bank, L&T and Axis Bank were the top five picks of fund managers
Looking for travel inspiration as you plan your summer vacation? Here's help.
Prabhudas Lilladher, a leading equity research and brokerage firm for foreign institutional investors, said in its 'India Equity Strategy' report that Indian equities were on a long-term bull phase.
Investors in international funds should have a horizon of more than five years. Not only will this help them overcome equity and currency volatility, it will also help them enjoy better tax treatment, says Sanjay Kumar Singh.
The RBI fell short of pumping Rs 150 billion into the economy at the beginning of 2018-2019.
Some may lose competitiveness due to higher compliance costs
'The estimates of tax forgone on this item run into hundreds of billions.' 'And there is neither fairness nor rationality to support continuing with this tax holiday for just one class of investors, those who put their money in shares,' says T N Ninan.
The October 2008 landslide in stock prices, which caused a nearly 90 per cent drop in India's equity derivatives business, has dealt a severe blow to Asia's oldest bourse, the Bombay Stock Exchange.
Deutsche Bank expects the Sensex to climb only 8% in 2017 to 29,000, and expects high volatility.
In a move to allow US investors to directly participate in India's equity markets, Chicago-based US Futures Exchange (USFE) will exclusively license the Bombay Stock Exchange's Sensex for US dollar-denominated futures trading beginning February 22 next year. At present, US investors can buy only a handful of Indian stocks listed on the New York and Nasdaq exchanges through an American Depository Receipt (ADR) authorisation.
It won't be an easy ride for the markets, reckon experts, considering the multiple state elections in 2018 and general elections next year.
Sanjay Mookim, India equity strategist at Bank of America Merrill Lynch, tells Puneet Wadhwa that this is not a time for investors to dabble in relatively small and illiquid stocks.
Ajit Issac started as a management trainee at Godrej.
Market players said the sell-off was triggered by pessimism that the government may not be able to balance growth with macro-stability.
Mudar Patherya has always had a soft corner from small-caps. This week, he gets excited about even smaller companies.
The Indian diaspora remain bullish despite single-digit equity market returns since May 2014, says Pavan Burugula.
To be sure, this is not some stunning new revelation that our equity markets are beholden to foreign flows.
For the sake of transparency, and to reduce undesirable bond market volatility, clarity on these would be welcome, preferably before the budgets for the next fiscal year get finalised, says Neelkanth Mishra.
Morgan Stanley said global factors are likely to remain a key influence on India's equity returns over the next one year.
'Despite uncertainties around demonetisation and the GST, we expect Indian equities to deliver positive returns.'
India country funds saw an outflow of $700 million
Most markets have seen significant erosion in investors' wealth this year
Stock market investors are betting that a new government led by Modi will be able to cut red tape and revive economic growth
India-dedicated equity funds attracted $2.5 billion inflows.
The best of India's brains are instead busy solving the world's problems (I deliberately exaggerate a bit to drive home the point), as our policies incentivise them to do so.
'Investors hate uncertainty and the demonetisation move certainly creates that.'
Wood Mackenzie projected India's real GDP level to overtake Japan and reach over $6 trillion by 2035.
Inflows from Europe, falling crude oil to come to the rescue if rupee cracks against the dollar.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
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GEM fund managers more overweight on India than ever before says Bofa-ML report.
India, with m-cap of about $1.6 trillion, is ahead of Switzerland.
While companies having fewer visa holders in the US seem to be less exposed to rising protectionism, most front-line IT stocks are trading at attractive levels and, to a large extent, factor in near-term headwinds.
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