Jul 8, 2000|
Momentum investors, FIIs: Switching places
The stock markets seem to have finally broken their ‘east bound’ trip, which was a feature for a large part of June. In July so far, the markets have logged in significant gains. But, who’s buying?
The situation in the markets continues to get more puzzling. The current situation is a complete reversal of the trend witnessed in the previous month when it was the FIIs that were sellers. Presently, the momentum investors are selling while the FIIs have invested a paltry sum of Rs 1 bn in the domestic markets in July so far. Despite the lack of buying interest, the markets have risen sharply (the Sensex is up 3.3%). It is likely that delivery based buying (that’s the only alternative left!) has helped the Sensex log in gains.
In the coming weeks, three factors will determine the medium term trend of the markets. First is the state of the US stock markets and their fall out on FII investments in India. Second, and in one way more important, will be the policy initiatives of the government in issues pertaining to disinvestment. Lastly, corporates begin to announce their latest quarterly results early next week. A continued growth in earnings could buoy market sentiment (the converse could also be true, although it seems unlikely). Another development that needs to be tracked in view of the approach of a deadline announced in the union budget is mutual fund inflows. These investments will not be eligible for 54 EA/EB benefits post September and this could hurt inflows into mutual funds that currently offer such benefits.
The markets are on a threshold. And it is likely that a trend will form sooner or later. Expect the trend to be either bearish or bullish. In other words do not anticipate the current uncertain trend in the markets to last long.
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 24, 2017
Kelly, Mattis, McMaster, Cohn, and Mnuchin are in charge. But these Pentagon bureaucrats and Wall Street hustlers may be worse than a loose-cannon president.
Aug 23, 2017
Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?
Aug 23, 2017
Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.
Aug 22, 2017
It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 21, 2017
Most Indians who cannot find jobs, look at becoming self-employed.
Aug 16, 2017
The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Aug 22, 2017
Post demonetisation, a cut in bank savings deposits rates was in the offing.
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