INSUBCONTINENT EXCLUSIVE:
Mumbai: Foreign investors have sold the April rally in the domestic stock markets, offloading shares to the tune of Rs 4,200 crore till
Friday.
Mutual fund flows have held fort again, with data available till April 16, showing buying of shares worth Rs 4,600 crore by
funds.
Experts said growing macro worries and oil prices surging above $70 per barrel have caused foreign investors to trim exposure to
India, and the trend is likely to continue as none of the macro worries seem to abate.
Mutual fund inflows in this scenario will be closely
watched out after they showed signs of slowdown in March
CLSA recently said continued April and May data would provide a clearer picture on the domestic flows front after flows into mutual funds
fell to a 13-month low in March.
FPI flows have been topsy-turvy this year
January saw strong inflows followed by near equal quantum of outflows in February
March again saw strong inflows
The faltering of interest is visible on both sides as the quantum of buying has reduced from FPIs as well as mutual funds.
Between January
and April last year, FPIs and mutual funds had pumped in Rs 42,000 crore and Rs 20,700 crore respectively into Indian equities
slowed down again as interest level in India has come down because of uncertainty around the macro with bond yields rising, oil going up,
rupee depreciating and valuations being on the higher side as far as good quality companies are concerned
Equities.
Sensex and Nifty have gained 4.4 per cent so far in April, with the surge in information technology stocks playing a big role in
We saw that in February as well, at which time the market had corrected sharply
We may be headed towards a similar situation
