REFILE-MARKET EYE-In foreign frenzy for Indian stocks, watch dollar returns

Thu Jan 31, 2013 11:38am IST

Related Topics

(Corrects to add dropped words 'at least' in first bullet
point)
* Foreign net inflows into Indian stocks reached 208.1 billion
rupees ($3.90 billion) as of Jan. 30, the strongest January
since at least 1998 and a seventh consecutive month of net
purchases.
* The strong buying has cheered domestic investors after Indian
stocks attracted foreign net buying of $24.4 billion in 2012,
although that came on the back of heavy selling in 2011.
* Whether those flows will continue this year has been a big
question mark as valuations -- currently at around 14 P/E
forwards -- catch up to historic averages of around 16.
* Credit Suisse has an interesting take: despite the strong
foreign inflows, Indian stock markets ranked 35th out of the 50
largest global markets this year as of Jan. 13 in terms of U.S.
dollar returns and 38th over the past 12 months.
* Credit Suisse estimates that by mid-February, Indian stocks
could rank 42nd on a year-to-date basis and 44th on a 12-month
basis.
* "This has important lessons in our view: that India's absolute
performance is likely the result of a global move into equities,
and not so much due to 'cyclical recovery' or 'bottom in
earnings'," Credit Suisse writes in a note.
* "For the next move up or down, therefore, one must look at
global triggers more than domestic ones," it adds.

 (rafael.nam@thomsonreuters.com /
manoj.dharra@thomsonreuters.com)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage