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Showing posts with the label marketcorrection

FPIs withdraw Rs 17,000 crore from equities in May so far on political uncertainty

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[hfe_template id='11223'] [ad_1] Foreign investors pulled out a massive Rs 17,000 crore from Indian equities in the first 10 days of the month owing to general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking. This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Looking ahead, post-general elections, corporate India's strong financial performance in Q4 FY24 is anticipated to be rewarded. While FPIs may adopt a cautious stance until the election results are clear, favourable outcomes and established political stability could see their return in significant numbers, Trivesh D, COO at Tradejini, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) expe...

How embracing volatility is the path to wealth creation on Dalal Street

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[hfe_template id='11223'] [ad_1] In the wake of a prosperous CY2023, concerns about a potential market correction surfaced among investors, casting a shadow over CY2024. Overvaluation in some segments of the stocks added to investors’ worries. Some mutual fund houses decided to restrict the fund flows into schemes focusing on small-cap stocks, which in turn played on the investors’ sentiment. The proactive approach of the regulator by asking the mutual funds to carry out a stress test, which acts as a timely nudge. The Reserve Bank of India also stepped in with proactive intervention in non-banking finance companies and payment businesses. All these have served the investors by bringing down the valuation premium the small and mid-cap stocks enjoyed over the Nifty50 index. Volatility, an inherent element of the market, poses a dilemma for inexperienced investors. However, whether volatility serves as a risk or an opportunity depends on the mindset of the investor, partic...