- Rising dominance of Indian investors, FII selling short-lived
Mumbai: For the first time in the Indian stock market, foreign institutional investors (FIIs) are selling heavily, but the market is not falling much. There is no ‘panic’ condition. Although there has been a lot of volatility, but the uptrend persists. FIIs made net sales of $2.50 billion, or about Rs 19,000 crore, in October and November and have sold shares worth Rs 10,000 crore so far in December as well.
Despite this, the Sensex has fallen only 9.4% from its highest level of 62,245 points and is now at 58,786 points. What is its meaning and what will be the future trend of the market, which sector will see more growth. Investment guru and broking house KR Choksi Shares & Securities Pvt. Ltd. (KR Choksey) founder Deven Choksey had a detailed discussion with Commerce Editor Vishnu Bhardwaj. Here are the highlights of the discussion:-
For the first time in the stock market, such a situation is being seen that despite the sell-off of FII, there is not much fall. What are the reasons for this?
See, earlier the Indian market was more dependent on FII, but now the dominance of the domestic investor is increasing. Investments of more than Rs 10,000 crore are coming every month in Mutual Funds only through SIPs. Apart from this, Indian retail investors are also investing in various other mutual funds and insurance schemes. This money is coming into the market and the market is getting support at the lower levels. Due to which the uptrend persists despite FII selling. Secondly, FIIs are also attracted by the India Growth Story and their investments will increase in the new year. There are 2 types of categories in FIIs. One is a long term investor and the other is a trader. These traders are currently booking profit on account of year end, which is short term.
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What will the market be like going forward and what policy should the retail investor adopt?
As I said, India’s growth story is stable and if GDP growth comes at 10%, then Indian economy can grow to $12 trillion in the next 10-12 years, which is 2.8 trillion now. Dollar is. Whereas the market capitalization will increase by 4 times to $ 14 to 15 trillion, which is currently $ 3.5 trillion. Due to the rapid growth of the country, all the sectors are benefiting. There are opportunities for big companies to become bigger, then small and medium companies are also getting opportunities to become big. In the current financial year also, the growth in the second half is expected to be good. In such a situation, there is no possibility of Nifty going below 16,500 mark and from this level investors can expect 20% return in the next one year. The advice for retail investors is to invest in quality stocks with a long-term view every fall.
Which sectors are currently looking positive for investment?
Talking about the positive sector, banking especially big private banks are looking good. They have clean balance sheet and good growth. Housing finance stocks are also looking good due to rising demand for affordable housing. Stock exchanges and depository companies are also attractive due to the increasing number of equity investors. In the Sunrise Sector Green Energy Industry, major companies like Reliance Industries, Tata Power will get very good benefits in the long term. The Pharma API and Specialty Chemicals sectors are also attracting investors.