Reuters Market Eye - Flows into India likely to remain limited in the near term, as relative valuations of stocks versus emerging markets do not look attractive, Macquarie says.
India thus "may be staring at a possible negative 12 month forward returns," Macquarie says.
The controversy over taxation for foreign investors, as well as macro challenges, are key reasons for net outflows of foreign institutional investors (FIIs) in April vs strong Jan-March inflows, Macquarie says.
Indian stocks look historically cheap, but is trading at a premium of around 33 percent vs emerging markets vs the long-term average of 27 percent, Macquarie estimates.
Nifty is seen trading in 5,000 to 5,500 range and the Sensex in 16,000 to 18,000 range, as "global liquidity glut" to provide some support, Macquarie says.
Trending On Reuters
Thousands of Nepalese huddled under tents and sought scarce food and medical supplies on Monday, two days after a massive quake killed more than 3,200 people and overwhelmed authorities. Full Article | Slideshow
- Quake warnings of minutes, not hours, are possible, but pricey
- UNICEF says nearly a million children "severely affected" in Nepal
- Factbox - Foreigners in Nepal at time of deadly earthquake
- "Demons on the mountain"; survivors recall avalanche terror
- In Kathmandu Valley, quake-hit Nepalis fend for themselves