A combination of strong earnings and economic growth, and hopes of the Federal Reserve ending the rate-hike cycle have pushed gross buying of Indian equities by foreign portfolio investors (IPO) to a new high.
In 2023, FPIs have been gross buyers of shares worth Rs 25.5 trillion, the highest ever in a calendar year.
FPIs also sold shares worth Rs 23.9 trillion.
On a net basis, they were net buyers to the tune of Rs 1.6 trillion, the highest since 2020.
Jyotivardhan Jaipuria says: “Smallcaps probably will underperform the largecaps over the next six months. So over the next two years, three years, five years, I would still think that the smallcap will do better. Because the economy is going to do well and in that environment, earnings for the small cap are going to be much better. ”
“Pharma had been going through bad times for the last 18 months in terms of stock price. Earnings were not that great but will turn around and that is one segment where we are playing. IT is also there. It is coming on our horizon after a long time. Because we have been underweight on this for quite some time, like we used to say, buy local, avoid global.”
“Whenever there is consensus on something, it is always one of the most dangerous sectors to go into. It is marked by over ownership. We like under ownership whenever there is consensus buy, this over ownership we are very sceptical about. But there are two-three things which are going for the bank sector. We have to remember that last year was a great year for the banking sector.”
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