My Account
Follow us on:
Powered By
Find & Invest in bonds issued by top corporates, PSU Banks, NBFCs, and much more. Invest as low as 10,000 and earn better returns than FD
Invest Now
Find safe & high-yielding bonds for your buck. Discover the right bonds meeting your investment amount & investment horizon
Invest Now
Powered By 
Diversify your portfolio by investing in Global brands.
Invest Now
Pre-configured baskets of stocks & ETFs that you can invest
in with a single click. Developed by hedge funds, global
asset management companies, experienced wealth
management firms and portfolio managers.
Invest Now
AMBAREESH BALIGA
Fundamental, Stock Ideas, Multibaggers & Insights
Subscribe
CK NARAYAN
Stock & Index F&O Trading Calls & Market Analysis
Subscribe
SUDARSHAN SUKHANI
Technical Call, Trading Calls & Insights
Subscribe
T GNANASEKAR
Commodity Trading Calls & Market Analysis
Subscribe
MECKLAI FINANCIALS
Currency Derivatives Trading Calls & Insights
Subscribe
SHUBHAM AGARWAL
Options Trading Advice and Market Analysis
Subscribe
MARKET SMITH INDIA
Model portfolios, Investment Ideas, Guru Screens and Much More
Subscribe
TraderSmith
Proprietary system driven Rule Based Trading calls
Subscribe
Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Subscribe
Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Explore
STOCK REPORTS BY THOMSON REUTERS
Details stock report and investment recommendation
Subscribe
POWER YOUR TRADE
Technical and Commodity Calls
Subscribe
INVESTMENT WATCH
Set price, volume and news alerts
Subscribe
STOCKAXIS EMERGING MARKET LEADERS
15-20 High Growth Stocks primed for price jumps
Subscribe
It may have the cachet of giving the best returns among its peers in 2022, but the Indian stock market is set to record the highest ever withdrawal of money by foreign portfolio investors (FPIs).
With global central banks rising interest rates and the rupee weakening several foreign investors pulled out money from the local stock market at record pace in the first half of the year, before ploughing back some of it in the second half.
That said, FPIs have withdrawn $18.1 billion from the Indian stock market heading into December, which is more than the $13.3 billion taken out by the same cohort during the global financial crisis of 2008, according to Securities and Exchange Board of India data.
However, the record pace of outflows from foreign investors, who own close to 40 percent of the market’s free float, has had little impact on the performance of the stock market.
MSCI India, a gauge tracked by most global investors and funds, has given year-to-date returns of 6.6 percent in local currency terms, making it the best performing stock market among those with market capitalisation of more than $1 trillion.
For comparison, the MSCI All Country World Index has fallen 17 percent in 2022 while the MSCI Emerging Market index has slipped 21 percent so far this year.
In US dollar terms, too, the Indian market has fared better than its developed peers despite foreign investors losing money. In 2022 so far, dollar returns on the Nifty 50 were down 4.3 percent against a 16 percent fall for the S&P 500 and 19 percent decline for the Shanghai Composite.
Helping offset the selling from FPIs, domestic institutional investors (DIIs) are poised to register record inflows. So far this year, DIIs have net bought local stocks worth $30 billion.
“Over the last year or so, India is looking bright from a fundamental perspective… The base case is that the market is expecting pretty strong economic growth for India over the next 3-5 years,” Pramod Gubbi, founder, Marcellus Investment Managers, told Moneycontrol.
Recently, though, foreign investors have also turned more bullish on the Indian stock market.
Since July, FPIs have made net investments of $11.5 billion largely because of increasing market confidence that global interest rates are likely to peak soon and because India’s economy is seen to be relatively better placed compared with other large economies.
A December 6 World Bank report said India would be less affected by global economic headwinds than the rest of the world.
Moreover, a new capital expenditure cycle, strong earnings growth expectations and relatively benign inflation situation are likely to help the Indian stock market attract foreign investors in 2023 after the record sell-off in 2022.
China’s dimming attraction because of rising regulatory and political instability is also likely to push foreign capital towards Indian shores amid lack of investable options within emerging market basket, analysts said.
“Our colleagues see a structural boom ahead for India,” Morgan Stanley’s strategists said in a recent outlook note for 2023.
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
You are already a Moneycontrol Pro user.
