Page 4 - Fii Flows News Today

Overseas funds held 31,549 more long index futures contracts than short contracts as of Thursday, turning to a net bullish position a day earlier for the first time since September, according to exchange data compiled by Bloomberg.

“Just because BJP has won the elections and the probability of them coming back with a bang in May is extremely high, it does not make sense to buy the stocks where the results will not be there because this market is in a phase where there is a lot of rotation happening. If the results do not follow through, you are going to be disappointed.”

“We really have a thriving ecosystem of entrepreneurship. So, any sector, when it comes to the limelight, you suddenly realise that there are hundreds of smaller companies which are already there doing stuff. It is just that now they are coming to a certain size and can go for IPOs.”

FIIs who had been bothered by the Indian markets rich valuations and were hoping for a correction to build more substantial positions in the market may see those hopes evaporating, leaving them with the unsavory choice of either staying out of a market that may not correct or may continue to do well or entering the market at current levels despite their reservations about the markets valuations in general, Kotak Equities said.

The turnaround in debt flows has happened even as the interest rate differential between the US and India has narrowed due to a series of large hikes in the fed funds rate by the US central bank

The outcome of state election, foreign flows, commodity prices and trade deficit balance will dictate market momentum in the medium to long term, analysts have said

Inflows to fixed income, including corporate debt, have reached nearly $6 billion thus far in 2023, with this month alone accounting for about a quarter of the flows, according to data compiled by Bloomberg.

"The last few months are more for campaigning/sloganeering rather than actual spending. To that extent, I feel that we may see a tempering of actual capex spend from the government over the next couple of quarters. A real pick-up would be once the new cabinet is in place. For now, we would like to take advantage of any volatility in the prices of capital goods companies to add some from the ‘flow category of companies to our portfolio."

Two other major IPOs to look out for are Mini Ratna company Indian Renewable Energy Development Agency, and Fedbank Financial Services. As for the Nifty50, analysts expect the index to remain in a consolidation phase until it decisively breaches the 19,850 mark. On Friday, the index ended 0.2% down at 19,731.80 points.

“I expect the demand story around the consumer goods basket to remain fairly healthy right up to the parliamentary election. That augurs well. Though the numbers have not been great, I would still say that it is a good point to accumulate consumer stocks at this point in time, given the outlook for the next six months.”