Stock markets at record highs! Market Guru Anil Singhvi sounds warning, says tough for buying frenzy to last
The Foreign Institutional Investors (FIIs) have been on a shopping spree as they have bought Indian equities worth as much as Rs 20,000 cr over the last 3-4 days! Zee Business Managing Editor Anil Singhvi tells what lies ahead for the investors, MSCI index rejig and more!
11:42 am
The Foreign Institutional Investors (FIIs) have been on a shopping spree as they have bought Indian equities worth as much as Rs 20,000 cr over the last 3-4 days! Zee Business Managing Editor Anil Singhvi tells what lies ahead for the investors, MSCI index rejig and more!
Market Guru said there could be some more buying in store. Some of the additions in the MSCI index are unexpected and there were some stocks which should have been added but did not find a place. 12 stocks will be added to the standard index and 2 names removed.
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FIIs की मजबूत खरीदारी हर दिन नहीं दिखेगी !
अनिल सिंघवी- MSCI इंडेक्स में शामिल होनेवाले शेयरों में अच्छी खरीदारी संभव, FIIs की ओर से बड़ी खरीदारी की उम्मीद कम#EditorsTake #FIIs #StockMarket @AnilSinghvi_ pic.twitter.com/CYMeSj8YSW
— Zee Business (@ZeeBusiness) November 11, 2020
The Market Guru said that some stock specific reactions could be seen. Singhvi said that as per a report by a top brokerage house the inflows amounting to Rs 30,000 cr could come. Out of this, buying worth Rs 20000 cr has been done.
He said that it was not the case that the total buying has been done in the MSCI index and if the adjustments worth Rs 15,000 cr has been in the MSCI index, the remaining amount of Rs 15,000 is to be done by 30 November. This means that the fund situation will remain strong.
Sounding a warning, the Market Guru however, said that it will be wrong to expect FIIs to do buying worth Rs 4,000-Rs 5,000 cr on daily basis. There have been many stocks that have run aggressively including Kotak Bank, Bajaj Finance with an expectation that the stocks will have good weightage in the MSCI index. The exact weightage and the tentative buying that would be seen in these stocks will be put before the viewers, later.
Singhvi said that two things are quite clear now – one is that the daily buying will not be to the tune of Rs 4,000-Rs 5,000 cr and secondly, the stocks which are being included in the MSCI index will remain strong at lower levels. The downsides are limited, he added.
The buying is also expected to come from the markets, he further said.
He said that the investors still have time till 30 November to buy these stocks.
The MSCI rebalancing has put a lot of strength in the Indian markets. A good delivery-based buying has been seen and most of it has been in the cash markets.
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He said that the flows from here could see some friction, but it is not the case of U turn from the FIIs.
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