Foreign flows into India drying up: Macquarie
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.
- Tweet this
- Share this
- Digg this
- UPDATE 11-Total CEO de Margerie killed in Moscow as jet hits snow plough
- Indiana police charge suspect who may have killed for decades
- Pistorius starts five-year term for killing Reeva Steenkamp
- India warns Pakistan of more pain in Kashmir fighting
- Total CEO de Margerie killed in Moscow as jet hits snow plough
As well as making the lives of millions of middle class Indians easier, the sharp drop in Brent crude prices since June is a boon for Prime Minister Narendra Modi in his fight to revive an economy growing at its slowest rate since the 1980s. Full Article