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Why India remains an overwhelmingly favourable investment despite rising political tensions

Canadian portfolio managers say they have an overwhelmingly favourable long-term outlook for India but are keeping a watchful eye on recent political tensions

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Bull run loses steam as FPIs go on selling spree


Bull run loses steam as FPIs go on selling spree
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Last Updated: Jan 26, 2021, 10:53 AM IST
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Synopsis
Foreign portfolio investors (FPIs) extended their selling to a second day, raising concerns that the strong bout of inflows that pushed the market to record highs could be over for the moment.
The Sensex fell 530.95 points or 1.1% to close at 48,347.59 and the Nifty declined 133 points or 0.93% to close at 14,238.90.
MUMBAI: Indian stock indices slid 1% on Monday led by heavyweight Reliance Industries Ltd, which dropped 5% after the conglomerate’s revenue from oil and chemicals declined in the December quarter. Foreign portfolio investors (FPIs) extended their selling to a second day, raising concerns that the strong bout of inflows that pushed the market to record highs could be over for the moment.

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valuations: Record valuations raise alarm in India's frenzied stock market


Synopsis
​The nation’s central bank governor warned earlier this week about the rally, citing the disconnect between the markets and the economy as well as expectations bad-loan ratios at lenders will almost double this year.
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“If interest rates rise, that would be a big accident for equities first, then the long-duration bonds,” said Paharia.
Analysts are cautioning against the blistering rally in India’s stock market as the country braces for its biggest annual economic contraction on record.
Overly optimistic earnings estimates and a reduction in liquidity pose the biggest threats to the scorching pace of gains, strategists from Nomura Holdings Inc. to Union Asset Management Co. warned. The S&P BSE Sensex Index has risen for 10 straight weeks -- its longest winning streak since 2009.

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