'It really doesn't matter that investors getting allotments sell their IPO stock holdings on listing day because a new set of investors are entering.' 'This explains the continued rise in stock prices even after the first day of listing.'
Report maintains its underweight call on India.
Given the impact Covid-19 pandemic had over the world economy, analysts expect global central banks, especially the US Fed, to keep the liquidity tap open, which, in turn, is likely to keep the equity markets, especially those in the emerging markets, buoyant.
The buyback offer saw subscription of approximately 1.47 times the maximum number of equity shares proposed to be bought back
UBS, Credit Suisse see emerging markets doing well next year, but expect India to underperform, given its rich valuations.
'There is a weak link between the economy and the stock market.'
Stock market volatility forced investors across the globe to pull out $24.5 billion from emerging market equity funds in the January-March quarter of 2011, including over $ 2 billion from funds focused on BRIC markets.
Global investors have pulled out a whopping $21 billion (Rs 94,485 crore) so far this year from equity funds in emerging markets, amid rising inflation concerns and continuing political turmoil in the Middle East.
Rs 1,000 now buys $13.5 against $14 a year ago.
According to global financial service provider Merrill Lynch's survey of fund managers for November, investors have remained heavily overweight on the emerging market equities and continue to favour the global technology, energy, materials and industrial sectors.
The markets had run ahead of fundamentals and could slide further.
Among sectors in Asia, JP Morgan prefers financials, domestic consumer discretionary and consumer technology. Notwithstanding the fall in the Sensex and the Nifty during the end of 2008, major emerging market fund managers actually increased their allocation to India in December.
Emerging market equities have delivered stellar returns over the last few years, outperforming their developed market peers since this new bull market began in end 2002.
Stephen S Roach, chairman of Morgan Stanley Asia, warned that Asia and India will be hit hard due to a likely recession in the US in 2008, saying "if US sneezes, Asia will catch a cold." Predicting a significant correction in emerging market equities, which would also not spare the fast rising Indian stock markets, Roach, who is regarded as one of the Wall Street's most influential economists, said he did not believe in the global de-coupling theories.
Market participants are hoping for a few tweaks on the taxation front which will encourage consumers and businesses to spend.
Jonathan Garner, chief Asia and emerging markets equity strategist, Morgan Stanley, gives Samie Modak his assessment of the Indian economy after 3 years of Modi Sarkar.
'The Indian economy is in slowdown and growth may stay slow,' notes Devangshu Datta.
19% of 320 institutional investors managing $1.3 trillion prefer India as investment destination in 2017
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.
GIC entered Indian real estate in 2005, when it did a deal with residential developer XS Real, a Chennai-based developer
'This is the first time we will see how SIP investors react to market correction.'
'If India can only grow at 5%, why bother spending time on the country?' asks Akash Prakash.
The dollar-rupee rate could move in the opposite direction if dollar policy rates rise and the FPIs sell in December, says Devangshu Datta.
The Rupee is expected to weaken further against the dollar.
Mark Mobius doesn't see any crisis brewing in emerging markets.
The FTSEurofirst was on course for its worst one-day per centage fall since it slumped more than 7 per cent in October 2008
Given the concerns around trade wars that threaten to jeopardise global capital flows as well, attracting foreign capital needs to be a policy priority, says Neelkanth Mishra.
Many factors leading to the 2008 financial crisis still exist.
Markets hope the Budget will steer spending towards infrastructure.
Of the 70 international feeder funds, more than half have made losses in 2014.
'Experts are not ruling out further pain as global factors cannot insulate India from the aftermath.'
Stock markets in structural bull run but there can be bouts of volatility says Ravi Gopalakrishnan, head, equities, Canara Robeco Mutual Fund
As oil minister, he has overseen India's petroleum and natural gas needs. But now he also runs the environment ministry, where he has issued permits for 100 stalled projects in a month-long spree that has delighted industry but shocked green activists.
The good news for us is that India's economy - and sentiment about it - is much better than it was a year ago, says Jamal Mecklai.
Even US equities are now back to end-2014 levels.
We are entering a period of turbulence, but you can profit off that volatility.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances