Feb 11, 2000|
FIIs lead the bull charge in the market
According to Sebi, foreign institutional investors (FIIs) have pumped in over US$ 200 m during the first ten days of February. The rise in inflows has sparked a sharp rally in market indices.
FII inflows seem to have arrived a month after the market expected them to. Infact, there was a sharp rally in December that was largely attributed to the potentially large inflow of foreign funds during the month of January (US$ 45 m). The markets have been near euphoric on account of the surge in FII inflows. Infact the Sensex has gained over 11.2% in the current month.
The FIIs have reason to be showing keen interest in the Indian markets. The economy is rebounding after the recent slow down. Added to this is the slew of reform measures announced by the government. These pertain to various issues including insurance and foreign direct investment. Then there is India's information technology sector that has performed exceeding well in recent years. This has again generated significant interest among foreign investors.
However, the picture is not all rosy. Three primary concerns remain. The first pertains to the sharp rise in the fiscal deficit. This has created stickiness in the form of high interest rates, adversely affecting investment prospects. The second, and a more visible, concern is the border tension with Pakistan. The discord could spark of a conflict and this could adversely affect the economy. Finally is the issue of political unstability given that the present government is a coalition of number of small constituents. Fresh elections would result in a delay in implementing reforms apart from the huge bill (the last elections cost Rs 4 bn) the government will have to bear.
More Views on News
Jul 25, 2017
Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?
May 27, 2017
What happens when minority shareholders are short-changed in the normal course of business?
Feb 15, 2017
PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.
Aug 24, 2016
And here's your chance to claim a free copy of this book...
Aug 12, 2016
And Why India's demographic dividend could turn out to be a doubtful debt...
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407