Stock market: The Indian stock market has continued to decline continuously for the last four months. The biggest reason for this is being explained by foreign institutional investors (FIIs). Meanwhile, Sameer Arora, founder and experienced market expert of Helios Capital, believes that this selling has now reached almost its lower level and may soon be seen to be seen. In an interview to Moneycontrol, Sameer Arora said that in January, FIIS had sold on a large scale. The main reason for this was the weak quarterly results of Indian companies and a decline in the rupee of the dollar.
He said that Indian companies did not demonstrate as expected during the December quarter, causing the trust of foreign investors. Due to the weakness of Indian rupee, foreign investors started distance from the Indian market. Apart from this, the sharp fall in midcap and smallcap stocks was largely due to the closure of leveraged trades.
India is the biggest loss in Asia
In the Asia-Pacific region, foreign investors have sold the best from India. So far this year, he has withdrawn about $ 8.2 billion from the Indian market. South Korea, Taiwan, Indonesia, Thailand and Malaysia also saw selling, but FII withdrawals from there remained between $ 0.1 billion to $ 1.3 billion, which is much lower than in India.
Market recovery signs!
However, despite this, Sameer Arora hopes that this migration of foreign investors will soon slow down. He says that such an aggressive selling cannot continue for a long time and when FII selling is low, the nervousness of retail investors will also be reduced and they will also stop selling Indian shares. Arora feels that the market is close to its lower level somewhere.
Now what next?
Sameer Arora is confident that the lethargy that came due to bad monsoon and cutting of government expenditure last year will start to improve after April 2025. This can speed up the earning growth speed of companies again. He said that the reasons like inflation and high interest rates were affecting the stock market, now they have become largely balanced.
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