Billions of FII dollars may chase Indian stocks in election season. Here’s why

Bloomberg proposes to include India FAR government securities in the Bloomberg EM Local Currency Index, which will ensure flows into the Indian markets. Interest rate cuts may be announced in the US, potentially leading to a fall in the Dollar index. FDI inflows in India have been increasing, reaching $85 billion in FY 2021-2022. The Indian government's pro-growth policies and the China-plus-one doctrine are expected to further boost FDI. Investors should consider adding duration funds to their fixed income portfolio and investing in attractively-valued companies in the manufacturing sector.

Experts believe the trend will continue as India's economic growth is likely to surprise on the upside while interest rates are expected to be stable, with the policy-influencing price gauge now trending close to the central bank's target.

Global funds sold $2.4 billion of Indian shares on a net basis last week, the most since June 2022. They sold another $374 million on Tuesday, according to provisional data, as trading resumed after Mondays surprise trading holiday announcement.

Under the two terms of the Narendra Modi-led government, Dalal Street investors had a good time despite implementing demonetization, GST, and the COVID-19 pandemic. The Nifty 50 has doubled in value in 9 years, with foreign and domestic institutional investors pouring in a net of $49.21 billion and ₹7 lakh crore, respectively. Post-pandemic, Indian equity markets increased significantly, making it one of the best-performing emerging markets in the MSCI index. The IT sector gave the best returns to the investors, followed by the financial services and FMCG sectors. Investors remain bullish on India due to its positive macro side improvement and stability.

India Business News: The UK has surpassed India as the world’s sixth-largest equity market for the first time in almost nine months as a weaker pound boosted the appeal of

Smallcap stocks are in bear territory, with losses up to 84% from high levels. Nifty Smallcap100 index was down 14% from peak. Worst losers include Ramky Infrastructure, Andrew Yule, IFCI, PTC India Financial Services, AGS Transact Technologies, Swan Energy, Railtel, and RVNL. Market experts weigh in on the situation.

“We are very positive on India...India is the second largest in our portfolio, and we have made a lot of money in the last two years. So, we are very positive on the Indian economy and companies,” Mobius said while speaking at the Morningstar Investment Conference.

“The next one year may not be very exciting for value investors because all of us know it is very rich valuations in general, so we have to go bottom-up stock pickers or business pickers, very selective, looking at the future of these companies and the verticals they are operating in and that way it is exciting. But in general, hurrying to pick stocks at these valuations, is not going to work.”

Stock market today is in ‘sideways to positive’ trend and hence ‘buy on dips’ is an ideal strategy for intraday trading, say experts

FIIs outflow was at ₹1,831.84 crore, DIIs inflow was at ₹1,469.50 crore