The broadening of the market rally sends the signal that growth will be broad-based, observes Akash Prakash.
'Yet the market didn't do all that badly because it was cushioned by domestic inflows.'
Foreign portfolio investors (FPIs) turned net buyers in October after being net sellers in the previous month. In October, FPIs bought shares worth nearly Rs 8,430 crore ($1 billion) against net selling of Rs 13,405 crore ($1.6 billion) in September. Positive flows during three of the previous four months have pushed the domestic markets towards fresh all-time highs. At present, the Sensex and Nifty are less than 2 per cent shy of breaching record highs logged in October 2021. A rally in equity markets in the US and Europe is in hopes that the Federal Reserve may go soft on rate hikes after its November meeting.
Morgan Stanley on Thursday became the latest brokerage to question the valuations of Indian equities and downgraded them from 'overweight' (OW) to 'equalweight' (EW) and recommended taking some money off the table. "We move tactically EW on India equities after strong relative gains - we expect a structural multi-year earnings recovery, but at 24 times forward price-to-earnings (P/E) we look for some consolidation ahead of US Fed tapering, an RBI hike in February and higher energy costs," Morgan Stanley equity strategists, led by Daniel Blake and Jonathan Garner, said in a note on Asia Pacific markets. The brokerage has upgraded Indonesia to OW, while maintaining an EW stance on China and UW on Taiwan.
India gains at the expense of Russia and Brazil
Most sought-after market of the past few years doesn't feature among top bets in Asia, emerging markets
Once a shining jewel, India 's sparkle has dimmed in recent months.
Markets ended in red, index heavyweights drag.
Morgan Stanley has upgraded China's equities amidst optimism about the country relaxing restrictions to slow down the spread of Covid-19. "Multiple positive developments alongside a clear path set towards reopening warrant an upgrade and index target increases for China," the brokerage said in a note. MSCI China's return on equity (ROE) is likely to rise from 9.4 per cent to 11.1 per cent by the end-2023.
So far this month, another $4.5 billion (Rs 33,000 crore) has flown into domestic stocks.
Singapore Exchange plans to launch more India-based products to provide opportunities for global investors interested in tapping the Indian market.
Markets and blue chip stocks may see a downward correction in short-to-medium term.
Thus far in FY21, BSE, NSE have rallied 70 per cent and 71 per cent, respectively.
Markets end in red; bluechips struggle to keep pace.
The proposal to increase public float, hike income tax surcharge, move to tax share buybacks and lack of stimulus to shore up economic growth has hurt investor sentiment.
In absolute terms, the year closed with the market capitalisation of all BSE-listed companies rising by Rs 45.5 lakh crore to Rs 152 lakh crore, or an increase of 42.8 per cent, compared to the closing value on December 30, 2016, says Pavan Burugula.
'Recent underperformance notwithstanding, equities should constitute a major part of investors' financial portfolio.'
Ends the August F&O series on a high tracking gains in RIL, HDFC and ITC.
The finance ministry said the sharp inflows last fiscal were due to the government's policy initiatives and economic recovery.
Does the rally reflect expectations of improving fundamentals or they are likely to correct?
The second half of June could be driven more or less by technical factors triggered by news flow from Greece, the US Federal Reserve and the monsoon. The technical picture seems bearish as of now, says Devangshu Datta.
The broader markets were also in top gear, with the BSE midcap index surging by 2.1% at 11,431 and the smallcap index gaining 1.4% at 11,735.
BSE IT index was the biggest sectoral loser, down 1.5% dragged by TCS
'If the Union Budget can provide incentives for animal spirits to come as well as induce demand stimulus and consumption, the Budget would have done a wonderful job.'
Except for September quarter, which had net inflows of $196 million, all other quarters had outflows.
Expectations of continued stimulus withdrawal by the US Federal Reserve added to the market's gloom.
Since October, FPIs have sold over $26 billion worth of stocks, which is the largest selling ever seen in India, observes Akash Prakash.
Extending gains for the third day, gold prices rose by Rs 300 to Rs 30,700 per ten gram in the national capital today on sustained buying by stockists for the ongoing marriage season amid a firming global trend.
This flight of capital began in early August due to risk-aversion created first by rising geopolitical tensions due to North Korean aggression and second by the US Fed's decision to shrink its balance sheet
Markets were left high and dry last week, as the 'Monsoon Effect' played havoc on trader sentiment.
The market breadth, indicating the overall health of the market turned negative from positive
From the 30-share pack, 24 companies fell, with Yes Bank emerging as the top loser, dropping 8.36 per cent, followed by NTPC, M&M and Vedanta.
Amid slowing growth and low interest rates, investors will need to focus on stock-picking, suggests John Remmert.
The broader markets, however, outperformed the benchmark indices -- BSE Midcap and Smallcap indices ended up 0.6%-1%.
Indian stocks have emerged as the best performers among those in the emerging and the developed markets across the globe so far this year, giving investors the highest return of nearly 60 per cent.
Global growth expectations have slumped to a five-month low.
In a country that is often focused on the ways in which it falls short, the start of a year is a good time to remind oneself of such positives, observes T N Ninan.
Aviation companies were in focus with all the three airliners SpiceJet, InterGlobe Aviation and Jet Airways adding in the range of 2% to 3% on the BSE
RIL, HDFC twins, M&M, Infosys among the top losers for the day.
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