Dec 1, 2001|
Exhaustion after sprint?
After a sharp run up, bourses globally, seem to have taken a breather this weak. Investors pulled out of equity, taking time to re-evaluate the strength of the global economy. Back home not much was different. At higher levels investors seem to be jittery of the sustainability in the markets, which could have led to participants' booking profits.
The rise from the bottom seems to be supported by the foreign institutional investors (FIIs), which pumped in Rs 8 bn in the month of October '01. However, institutional investors, considered to be among the savvier lot, have exited the markets last month. Net investments of FIIs in the month of November '01 were a meager Rs 38 m while mutual funds, as they have done for most of the year, pulled out Rs 3.3 bn. Not that it is a definitive indication; FIIs were investors through the year while markets fell, but does it mean that this category of better informed investors believe that the markets are fairly valued? And any further investments are likely to wait till there is more visibility on direction of the economy, sector reform policy and disinvestments?
It is largely the retail and momentum investors that seem to have built the November rally. Although levels are much lower compared to the heady days of 6k (BSE Sensex), this again seems to suggest that small investors have entered after markets picked up steam. As a word of caution and an indicator of operator activity, we ran a small check on the biggest gainers on the BSE (A-group) over the past month. Of the top 20 gainers, 6 belonged to the infamous K-10 portfolio.
There have been contrasting views on the agricultural sector with few believing that the packed depots of the Government are likely to result in poor crop realization adversely impacting growth in the sector. In our discussions with Mr. Mahesh Vyas, ED, Centre for Monitoring Indian Economy (CMIE), he opines that although a good crop season is good news for Corporate India one should not jump the gun. The rise in farm income to percolate into strong rural demand will depend on a series of good harvests.
Interview with Mahesh Vyas, CMIE
Several participants are espousing the rally to not be fundamentally supported, which has led to shakiness among investors. It seems markets are likely to trade in band till there is more news for investors to make a firm decision.
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 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Aug 16, 2017
And what it has in common with beating the stock market too.
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Aug 14, 2017
Last week's correction is making a number of Super Investor stocks look a lot more attractive...
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 4, 2017
The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.
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