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Highly influenced by the reform agenda of the new government to revitalise the economic growth, Foreign Institutional Investors (<keyword id="6368141" type="COMPANY" weightage="80" keywordseo="FIIS">FIIs</keyword>) have poured in a whopping Rs. 17,000 crore in the <keyword id="886139" type="UNKNOWN" weightage="80" keywordseo="Indian-capital-market">Indian capital market</keyword> since the beginning of this month. 
 As per the latest official data, net <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> by overseas investors in the <keyword id="44794" type="UNKNOWN" weightage="80" keywordseo="Equity-market">equity market</keyword> were Rs 6,665 crore ($1.1 billion) from September 1 to 12, while they infused a net amount of Rs 10,432 crore ($1.72 billion) in the debt market during the period, taking the total to Rs 17,098 crore ($2.8 billion). 
 
Market analysts anticipate that inflows would continue in the coming months on a slew of measures announced by the government. 
 
Since the beginning of the year, foreign investors have made a net investment of Rs 1.98 lakh crore ($33 billion) into the country's securities market. 
 in nearly 22 years, strong inflows in the recent months have taken the cumulative net investments of FIIs, the main driver of the <keyword id="444236" type="UNKNOWN" weightage="80" keywordseo="Indian-equity-market">Indian equity market</keyword>, to Rs 9.88 lakh crore ($204 billion). This is based on the data since November 1992 when the FIIs began investing into Indian markets and includes about $160 billion investments into <keyword id="45369" type="CITY" weightage="80" keywordseo="equities">equities</keyword> and about $44 billion in debt markets. 
(Image: indiatimes)

FIIs Pump In Rs 17,000 Crore In Indian Capital Market In September So Far

For the first time in over a year, global investors have gone back to being ‘neutral’ on the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=markets">markets</a> compared with the overweight position that they had held since October 2014. This was stated by the latest edition of the Bank of America Merrill-Lynch Fund Managers’ survey. 
 
The dip in euphemism among global investors amply reflects a growing perceptive that Indian equity markets are undergoing a correction and investors need to be cautious. 
 
According to the survey, it is the first time since October 2014 that India is falling out of favour from being most overweight. 
 
In fact, foreign investors have turned bullish on India since 2014 Lok Sabha elections, hoping that the new government will help revive economic growth by bringing far reaching reforms and addressing structural issues, leading to a spike in foreign inflows into Indian equity markets. 
 
In 2014, foreign investors pumped in a whopping $16.16 billion in Indian equities, helping the market surge close to 30%. 
 
Indian stocks also benefited immensely from the fall in crude oil prices, which coincidentally started falling in June 2014. The <a href="http://www.businessinsider.in/searchresult.cms?query=modi+government">Modi</a>-led government made use of this opportunity by ending subsidies on diesel in October 2014. 
 
In contrast, since September this year, the benchmark BSE Sensex fell more than 10% while the Nifty too marked a sharp fall. 
While the slowdown in China (Chinese equity markers declined more than 30% over the last few months) was an obvious trigger, the prolonged surge in markets—which lasted for more than a year since the run-up to the polls last year—was anyhow necessitating a correction. 
 
Overall, volatility in <a href="http://www.businessinsider.in/searchresult.cms?query=emerging+markets">emerging markets</a>, concerns over worsening global risk environment, weak earnings outlook, collapsing commodity prices, a stronger US dollar and higher bond yields have forced fund managers to pull their positions to close to record lows across markets. This means what is happening in India is not an aberration. 
 In the past 17 months since assuming power at the Centre, the BJP government led by <keyword id="6354814" type="UNKNOWN" weightage="20" keywordseo="prime-minister-Narendra-Modi">Prime Minister Narendra Modi</keyword> managed to set a clear direction for economic growth, enliven the spirits of investors at home and elsewhere by announcing a slew of structural reforms. 
 
The reforms included removing adversarial and oppressive direct tax measures (now domestic taxation processes are simpler—tax returns can be filed online and taxpayers can get refunds online) and made a considerable headway in its attempt to implement GST—the biggest indirect tax reform measure envisaged in the country’s history. 
 
However, abysmal levels of capex by private firms remain a concern as Indian companies continue to be over-borrowed and overstretched. 
Corporate results that continue to be subdued too have proved to be a dampener for the markets. 
 
In fact, despite broadly stable EBITDA margins, net profit margins remain on a downtrend, and are 1.8 percentage points below their 20-year average of 11.7%. Among the reasons for poor profits of Indian corporates are high interest costs and depreciation and amortisation expenses owing to increased debt. 
 
Besides, the loss of BJP in the state elections in Bihar came as a major setback for the Modi-led government, hurting the market sentiment further. 
 
While BJP had last year faced defeat in state elections in Delhi, the loss in Bihar is much more damaging as the state has much bigger say in Rajya Sabha (BJP was hoping to improve its tally in the upper house through a win in Bihar). The government that has already been facing a challenge in getting key reforms ratified by the upper house where it is in minority is likely to see a stronger opposition paralysing its initiatives in the future. 
 
In addition, an impending interest rate hike by Janet Yellen-led US Federal Reserve continues to weigh down on India as a reversal of rate trend in the US after almost a decade is expected to pull funds out of emerging markets including India. In fact, a far higher proportion of respondents in the Bank of America Merrill-Lynch Fund Managers’ survey are expecting the Fed to hike rates this year (the proportion of respondents expecting a Fed rate hike in December jumped sharply to 81% compared with just 47% last month) and many investors are betting on a stronger dollar as a consequence. 
 
However, the India story continues to be a strong and intact. Indian macroeconomic indicators remain relatively strong. The country recently shifted its method of assessing economic output from GDP (gross domestic product) to GVA (gross value added). It also revised the base year to 2011–2012 from 2004–2005. This resulted in economic output for fiscal 2013–2014 being revised to show a 6.9% pace instead of the 4.7% estimated by the GDP method. According to latest data, India’s GDP rose 7.3% in fiscal 2015, up from the 6.9% growth witnessed in fiscal 2014. 
 
Besides, the primary markets are beginning to see an uptrend after a lull of almost two years. More than a dozen companies have filed draft papers with markets regulator SEBI for public offers since the new government took charge at the Centre in May 2014. 
 
Besides, many companies, which scrapped their IPO plans earlier due to bad market conditions, have been keen to make another attempt to enter the capital markets. These translated in to a modest uptick in IPOs so far during 2015. The uptrend in IPO market is likely to have a positive effect on secondary market as well. 
 
Besides, as China slows down, India’s position as an investment destination get a boost as FIIs looking to infuse funds in emerging markets would need a relatively safe haven to park their funds. 
 
While global cues remain subdued, if Modi government continue to remain committed to pushing reforms and the opposition sees reason to support them, Indian markets are likely to overcome headwinds in the long run as the India story continues to be positive at the broader macroeconomic level. 
 
(Image: Indiatimes)

Why Indian equity market is likely to overcome headwinds

Negative global cues along with inflationary worries and mild profit bookings subdued India's key stock indices -- S&amp;P BSE <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and NSE Nifty50 -- during the mid-afternoon trade session on Thursday. Initially, the two indices opened on a positive note. Among sectors, all of them traded in the red with loss leaders being Metals, Capital Goods, Auto, IT and Healthcare. At 2.30 p.m., the S&amp;P BSE Sensex of the BSE traded at 59,665.68 points, down 342.65 points or 0.57 per cent. It opened at 60,179.93 points from the previous close of 60,008.33 points. Similarly, the broader 50-scrip <keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> at National Stock Exchange (NSE) traded lower. It traded at the 17,778.45 points, down 120.80 points or 0.67 per cent during the trade session. "Global markets are flat to mildly negative as traders weighed risks to the global recovery from the prospect of faster monetary-policy tightening to tackle inflation," said Deepak Jasani, Head of Retail Research, HDFC Securities. "Nifty has yet not breached 17,613 on the downside and hence large bearish moves can be ruled out for now." Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, said: "Domestic sentiment is impacted by the negative cues from other Asian markets coupled with inflationary pressures partially driven by surging energy prices. "Our research suggests that if the 58,900-59,300 levels may act as an important support in the market. If the market sustained above 58,900, we can expect it to trade in the range of 58,900-60,200." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/apple-may-soon-open-physical-stores-in-mumbai-and-delhi-as-it-starts-hiring-for-different-roles/articleshow/87773561.cms">Apple may soon open physical stores in Mumbai and Delhi as it starts hiring for different roles</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/google-pay-users-in-india-will-soon-be-able-to-interact-in-hinglish-split-bills-and-sell-their-products-online/articleshow/87774356.cms">Google Pay users in India will soon be able to interact in Hinglish, split bills and sell their products online</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/zomato-is-now-bigger-than-paytm-reasons-why-the-market-is-not-excited-about-vijay-shekhar-sharmas-vision-of-a-superapp/articleshow/87777762.cms">Zomato is now bigger than Paytm — reasons why the market is not excited about Vijay Shekhar Sharma’s vision of a superapp</a>

Concerns over high global inflation keep Indian equity markets under pressure

The <keyword id="62830" type="PERSON" weightage="20" keywordseo="Indian-Stock-market">Indian stock market</keyword> recovered from the initial decline on Tuesday morning to trade in the green with the <keyword id="10175204" type="UNKNOWN" weightage="20" keywordseo="bse-sensex-trading">BSE Sensex trading</keyword> over 150 points higher. Healthy buying was witnessed in the banking and FMCG stocks. At 10.50 a.m., Sensex was trading at 40,299.32, higher by 153.82 points or 0.38 per cent from its previous close of 40,145.50. It opened at 40,199.08 and has so far touched an intra-day high of 40,311.69 and a low of 39,978.39 points. The Nifty50 on <keyword id="163439" type="COMPANY" weightage="20" keywordseo="The-National-Stock-Exchange">the National Stock Exchange</keyword> was trading at 11,793.70, higher by 25.95 points or 0.22 per cent from its previous close. The top gainers on the Sensex so far were Kotak Mahindra Bank, Nestle India and NTPC, while the major losers were Infosys, ONGC and IndusInd Bank. SEE ALSO:<a href="https://www.businessinsider.in/business/corporates/news/hcl-tech-is-looking-to-expand-operations-in-canada-if-h-1b-visa-issues-persist/articleshow/78884838.cms" data-type="tilCustomLink"> EXCLUSIVE: HCL Tech is expanding operations in Canada as H-1B visa issues persist</a> <a href="https://www.businessinsider.in/business/news/bezos-vs-ambani-battle-eight-questions-regarding-amazons-disclosures-of-future-deal-will-be-in-the-spotlight/articleshow/78883583.cms" data-type="tilCustomLink">Bezos vs Ambani battle: Eight questions regarding Amazon's disclosures of Future deal will be in the spotlight</a> <a href="https://www.businessinsider.in/education/news/how-to-register-for-neet-counselling-2020-online/articleshow/78884869.cms" data-type="tilCustomLink">NEET counselling 2020 registrations begin today: Here’s all you need to know</a>

Indian equity markets trade higher led by banking, consumer good stocks

<a href="http://www.businessinsider.in/searchresult.cms?query=Indian+companies">Indian companies</a> have bagged close to Rs 3 lakh crore in the first half of the current fiscal. 
 
An analysis of funds showed that companies have net fresh capital totaling Rs 2,90,470 crore through equity and debt. Over Rs 2.44 lakh crore came from debt, while a mere Rs 46,197 crore through equity. 
 
In the <a href="http://www.businessinsider.in/searchresult.cms?query=equity+segment">equity segment</a>, money was raised mainly through the preferential route (Rs 20,874 crore) followed by qualified institutional placements (Rs 12,658 crore), rights issue (Rs 7,760 crore) and initial public offers (Rs 4,904 crore). 
 
In the <a href="http://www.businessinsider.in/searchresult.cms?query=debt+market">debt market</a>, companies bagged over Rs 2.43 lakh crore through debt placement, while public issuance of debt securities accounted for just Rs 1,553 crore. 
 
Image credit: Indiatimes

You Searched For "indian equity market" and got 5 results

FIIs Pump In Rs 17,000 Crore In Indian Capital Market In September So Far

BI India Bureau

Why Indian equity market is likely to overcome headwinds

Preetam Kaushik

Concerns over high global inflation keep Indian equity markets under pressure

IANS

Indian equity markets trade higher led by banking, consumer good stocks

IANS

Indian cos net Rs 3 lakh crore in H1 FY16

BI India Bureau

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