FIIs to Remain Bullish on India
Dalal Street Investment Journal|December 19, 2022
We keep saying that the importance of FIls reduces as domestic participation in Indian equity market increases. However, we don't stop tracking FIls activity, do we? There is a reason why we do so. Yogesh Supekar highlights FIls' participation and explains why Flls cannot ignore a growth market like India
Yogesh Supekar
FIIs to Remain Bullish on India

This November was one of the sweetest for equity investors as the BSE Sensex climbed by an impressive 3.24 per cent. Interestingly, these gains of little over 3 per cent pushed the BSE Sensex to all-time highs and made it a memorable month for investors. What is notable in the recent market moves is the huge inflow from FIIS.

FIIS pumped in almost USD 3 billion in just 10 trading sessions by November 9, thus indicating huge interest in the Indian markets. While the FIIs have been net buyers in 2022, the question is whether they will remain net buyers in 2023 as well. To understand what can be expected of FIIs in 2023 it is important to note why FIIs showed interest in 2022 in the Indian equity markets. Some of the strong reasons why the Indian market was favoured by FIIs in 2022 include:

1) Indian Markets' Outperformance: When the global equity markets were trading with high volatility with a strong downtrend, the Indian equity market showed to the world what stable growth can do your portfolio returns. The table below highlights the Indian equity markets' outperformance over the developed markets and other emerging markets.

The relative outperformance of the Indian benchmark indices was the biggest trigger for the global investors to flock the Indian markets. The global fund managers could not miss the opportunity to generate alpha by investing in India when the other developed and emerging markets were generating negative returns.

2) Relative Strength of Rupee: One of the significant highlights of 2022 was the relative strength of the Indian currency. Even though the rupee weakened by per cent in 2022 the slippage was much lower when compared to the other currencies. The table below highlights the relative strength of the rupee versus other currencies. The strength shown by the rupee implies prospects of higher returns on portfolio investments.

この記事は Dalal Street Investment Journal の December 19, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Dalal Street Investment Journal の December 19, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

DALAL STREET INVESTMENT JOURNALのその他の記事すべて表示
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 分  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 分  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 分  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 分  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 分  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 分  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 分  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 分  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 分  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 分  |
July 29, 2024