After turning net buyers last month, foreign investors continued their positive stance on Indian equities and invested over Rs 14,000 crore in first week of August amid softening of the dollar index
FPIs bought shares worth Rs 4,989 crore in July after being net-sellers since October
Beyond a near-term reversal, foreign selling and domestic buying of Indian equities may resume
The rupee gained 45 paise to close at 79.24 (provisional) against the US dollar on Friday as heavy buying in domestic equities and weakness in the greenback bolstered investor sentiment
Benchmark indices soared over 4% last week. Return of foreign investors and easing in commodity prices breathed a new life into the Indian equities. Know more about this bull run
Foreign funds are showing signs of a return to Indian equities as recent declines in oil prices and the dollar bring some reprieve for emerging markets
'Crude oil prices, dollar index and rupee movement will be other dominating factors'
Wary of the scenario on the global and domestic fronts, foreign investors continued to withdraw from Indian equity markets and pulled out close to Rs 14,000 crore in this month so far
'Within the EM pack, barring high valuation, India's fundamentals are superior. But if oil prices spike further, we might see another round of sell-off in India', said Gohil
Barring the past few months, small-cap and mid-cap funds outperformed significantly, compared to other categories until the start of calendar year 2022
These include capital goods, public sector banks, automobiles, oil and gas and utilities
Given the macro headwinds - the need to tighten monetary policy combined with the risk of a much higher oil price, are the key reasons Wood has been in no hurry to add to the 'overweight' position
Persistent foreign capital outflows also dented investor sentiment, forex traders said
Our global desk currently maintains an 'overweight' rating on India with a Sensex target of 66,000
Business Standard's Puneet Wadhwa speaks to Dan Fineman, Co-head of APAC Equity Strategy at Credit Suisse on the extent to which the markets are pricing in the negatives, and his investment strategy
Dan Fineman, co-head of Asia Pacific, Securities Research, Credit Suisse, says the brokerage would like to upgrade India if an opportunity arises
Equities as a percentage of households net worth has risen to an all-time-high as of March 2022
The Government Pension Fund Global, Norway's $1.4-tn sovereign wealth fund that holds 1.3% of all the world's listed companies and is the largest in the world, raised its Indian bets last year
FIIs have now been net sellers in the Indian equities market for more than 5 months in a row, the brokerage said, referring to National Securities Depository data
Many fear that the high commodity prices would lead to further pressure on inflation and boost prospects of stagflation