'Expect India to keep doing well irrespective of geopolitics.'
While FIIs have pumped in nearly Rs 17,000 crore, MFs have been net buyers to the tune of Rs 9,000 crore.
In yet another step to attract foreign money, the Reserve Bank of India (RBI) has allowed non-resident investors to acquire shares of listed Indian companies through stock exchanges under the foreign direct investment (FDI) scheme.
Investors globally pulled out more than $3 billion from equity funds focused on Emerging markets including India in a week amid concerns over the US Federal Reserve's plan of curtailing its stimulus drive starting later this year.
In the near term, two key factors are the outcome of the monsoon season in respect to cropping yields; and the correction in the crude oil price.
'Arbitrage funds make the most sense for those in the 30 per cent tax bracket, are viable for those in the 20 per cent bracket, but less so for those in the 10 per cent bracket.'
'Geopolitics will be the most important driver of financial markets in 2025.'
Fresh investments through participatory notes (P-notes) are flowing into the cash market in huge quantum. The rush of investments is because foreign institutional investors (FIIs) have enough headroom to invest through P-notes.
As FIIs propel it beyond 20,000, caution is critical.
Oil and Natural Gas Corporation, Hindalco Industries, Tata Steel and Vedanta were down up to 70 per cent below their one-year highs.
Global liquidity expected to continue amid ECB stimulus
Sebi on Friday barred fugitive businessman Vijay Mallya from the securities markets and restrained him from associating with any listed firm for three years in the matter of routing of funds to the Indian securities market using overseas bank accounts with UBS AG. The Indian government has been attempting to extradite Mallya from the United Kingdom to face fraud charges related to his now-defunct company Kingfisher Airlines. Mallya has been living in the United Kingdom since March 2016.
'Investors need to be stock specific and should not rush to buy stocks at the current levels.'
In 2012, partly due to stringent disclosures, P-note custody inched up from Rs 1.51 lakh crore (Rs 1.51 trillion) to Rs 1.77 lakh crore (Rs 1.77 trillion), an increase of 17 per cent.
The investment limit in long-term infrastructure bonds, however, has been kept unchanged at $25 billion.
From the valuation angle, the market is showing similar signs of being over-valued without being in a bubble territory yet.
Among the Sensex firms, Axis Bank, Power Grid, Maruti, State Bank of India, Tata Motors, ITC, Nestle and Mahindra & Mahindra were the major gainers. Bajaj Finance and Larsen & Toubro were the laggards.
The US Fed interest rate decision, inflation data and FIIs are the key factors that are expected to drive stock markets this week, analysts said. Global trends will also be tracked by investors for further cues, they added. "The Indian stock market's future trajectory will be influenced by a blend of global and domestic factors.
In the event of a dramatic tightening of credit, some of the sources of capital like Foreign Institutional Investors, Foreign Direct Investment and External Commercial Borrowing, could dry up.
Strong equity flows from domestic institutions, not foreign inflows, will be the real driver of the expected bull rally
With mutual funds, promoters turning net-buyers, foreign investors may have to bid up prices to raise holdings.
Except for liquidity, which could act in favour or against the market in the short term, most market participants are bullish.
After heavy selling in the past two months, foreign investors have staged a strong comeback to Indian equities with a net investment of Rs 24,454 crore in the first week of December amid stabilising global conditions and expectations of potential US Federal Reserve rate cuts. This revival follows significant outflows in the preceding months, with foreign portfolio investors (FPIs) pulling out a net Rs 21,612 crore in November and a massive Rs 94,017 crore in October - the worst monthly outflow on record.
Equity benchmark Sensex declined nearly 390 points on Friday, pressured by heavy selling in IT, tech and energy stocks despite a positive trend in the global markets. Besides, rising crude oil prices and relentless foreign capital outflows further weighed on sentiment, traders said. The 30-share BSE Sensex opened strong but came under severe selling pressure to close 389.01 points or 0.62 per cent lower at 62,181.67.
Previous peak in 2010 crossed in first five-and-a-half months this year.
The party says 23% of foreign investments should be by FIIs.
'2025 is the year to build a portfolio for the future. Focus this year should be on valuations and visible growth.'
'Indian equity valuations, although not very expensive, are not cheap either.'
US Fed rate rise raises risk of further drying up of FII flows.
There is a lot of optimism across all markets and a large part of it is justified, says Samir Arora of Helios Capital Management.
Putting Indian markets on fire, the foreign investors have pumped in over Rs 1-lakh crore of so-called 'hot money' into stocks during 2014 -- taking their cumulative net investments here beyond Rs 10 lakh crore.
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Inflows cross $10-billion mark for 3rd consecutive year.
The broader markets ended mixed with mid-caps gaining 0.1 per cent and small-caps falling 0.1 per cent on the BSE.
With outlook uncertain for a range of sectors, no one is quite sure of where to invest in stocks
Smaller stocks have emerged as Dalal Street's favourites in 2023 that has turned out to be a "great year" for equities, rewarding investors with big gains, driven by optimism over the country's macroeconomic fundamentals and heavy retail investors participation. Experts said equity markets are experiencing a prolonged bull run and it is during this time that the midcap and smallcap segments tend to outshine their larger counterparts. Till December 22 this year, the BSE smallcap gauge has jumped 13,074.96 points or 45.20 per cent while the midcap index has surged 10,568.18 points or 41.74 per cent.
In the Sensex pack, Bharti Airtel was the top performer, surging 4.61%. Other gainers included ICICI Bank, IndusInd Bank, L&T, Sun Pharma, RIL, HDFC duo, Tata Motors and M&M -- climbing up to 3.69%.
'We believe 2017 could see higher flows from foreign institutions as money comes back to growth markets like India.'
Overall, the MF industry saw nearly Rs 5 trillion, or 18 per cent, of asset erosion in March, with the asset base shrinking to Rs 22.26 trillion from Rs 27.22 trillion at February-end.
The rupee tumbled 3 per cent against the US dollar in 2024 as concerns over slower economic growth and a stronger greenback in global markets weighed, but it was among the least volatile currencies in the world and the headwinds may be less intense in the coming year.
FIIs have offloaded stocks worth Rs 13,110 crore
