Morgan Stanley removed banking stocks from its model portfolio when it slashed its weighting on the sector by 500 basis points. Several foreign brokerages, such as UBS, JP Morgan, and Credit Suisse, of late, have also become less optimistic about banking stocks.
Rising oil prices, sharp slowdown in mutual fund inflows and steep valuations remain the key risks for Indian investors going ahead.
Mutual funds have invested nearly Rs 94,500 crore in equities thus far in CY17, compared to Rs 32,000 crore in the year ago period, at a time when foreign investors have turned net sellers of India since August.
The surge in oil prices has also affected the rupee, which hit a 6-week low of 70.25 on Friday against the dollar.
India is still the best story in major emerging markets from a 5-year perspective.
Analysts expect the central bank to remain watchful of inflation.
Stock selection in India remain relatively low-beta given the lack of any conviction here on any near-term upturn in the investment cycle
Benchmark indices plunge 4.7% in the first full week of 2016.
Demonetisation will wipe out the likely benefits of a good monsoon this year, says Christopher Wood of CLSA.
CLSA managing director & equity strategist Christopher Wood, and executive director Mahesh Nandurkar tell Puneet Wadhwa that the markets could give a return of around 10 per cent from the current level over the next year.
FIIs pump in $1.4 billion in March, after pulling out $2.9 billion in Jan-Feb.
It would be beneficial for the economy to hold on to high interest rates till inflation numbers are under control.
The price of gold in India seems to have bottomed out.
What differentiates Rajan from his predecessors is his proactive steps in anticipating a problem and coming up with out-of-the-box solutions
Imports in 2016 expected to be lowest in 7 years but experts don't rule out a revival in demand if the yellow metal's price falls
Brokerage CLSA has raised its "already substantial overweight in India", its chief strategist Christopher Wood wrote on Aug. 7.
RBI Governor Raghuram Rajan is regarded as credible by global financiers.
'If I had to highlight one area that will do well, it is the financial assets -- that is the private sector banks, insurance and mutual funds.'
Most experts said indices would open higher on Monday and rally might sustain for a few sessions
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