Will the recovery in the markets sustain as the FIIs vs DIIs tussle continues

Will the recovery in the markets sustain as the FIIs vs DIIs tussle continues

by 5paisa Research Team Last Updated: Feb 21, 2022 - 06:45 pm 37.3k Views
Listen icon

Pratik Gupta of Kotak Institutional Equities shares his insights on market trends.

In the good old days, a change of 1-2% in a week in broad market indices like Nifty and Sensex was considered to be highly volatile, today we are witnessing the days where markets are shaking 3% up and down on consecutive days with 0.5% change in a single day has become a new normal. But of course, there are numerous factors contributing to the volatility, the Foreign Institutional Investors (FIIs) withdrawing from equities has become a concern for many. Pratik Gupta, CEO & Co-head, Kotak Institutional Equities, has expressed his valuable insights on the markets that you need to know!

Talking about the FIIs pulling out the money from India he feared that the trend might continue in the short run as China has become a more favourable destination for foreign investors to park their money. Talking about the multiples, he said that the domestic equities are still trading at a multiple of 20x FY23 earnings which he believes is not cheap enough. Last year, India had outperformed most of the bigger emerging markets (Ems) but also has come up with rich valuations so far.

Check out: How to select the right hybrid fund?

He seemed pretty optimistic regarding the medium to long-term outlook for the domestic markets but in short term he believes the FII selling will continue and put pressure on prices. On the silver lining, he feels banking, capex, consumer discretionary, and engineering exports to be in relatively safer hands. He also seemed bullish on the pharma sector in the short run.

However, there are no doubts regarding the volatility one can expect going ahead. He has advised sticking to companies that have a good earnings story and a healthy balance sheet. The interest rate hikes are another major concern. They have touched their bottoms and are ready to fire up anytime soon. He had exclaimed, “this is the year where men are separated from boys”. The time has come to be a little more prudent before making any investment decision!

 

Also read: Jagsonpal Pharmaceuticals meets the trend template of Mark Minervini

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.