Mumbai: Bharatiya Janata Party’s sweeping win in India’s biggest state Uttar Pradesh as well as three other states sets up the ruling party well for the 2024 general elections, said Christopher Wood, global head of equity strategy at Jefferies. Even if the political situation is clear, the Indian stock market is facing troubling headwinds, he said.
“The results were even better than expected for the governing party of Indian Prime Minister Narendra Modi. The results also confirm me ..
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Foreign Investors have been offloading Indian stocks since October 2021 when they last hit record highs. The outflows, triggered by worries on aggressive rate hike plan and liquidity withdrawal by the US Federal Reserve, got exacerbated by the Russia-Ukraine tensions. Moreover, Indian markets had a near vertical rally between March 2020 and October 2021, notwithstanding the impact of the Covid-19 pandemic.
In a recent note, ICICI Securities said the trailing 12-month selling by Foreign ..
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The ongoing FPI selling in Indian equities is turning out to be the highest selling spree since the global financial crisis of 2008 with trailing 12-month FPI cumulative selling of US$36 billion versus US$28 billion during the global financial crisis,” said ICICI Securities.
Wood said that the Indian stock market has to contend with a monetary tightening cycle which will be made worse by higher oil prices due to the Ukraine invasion.
The RBI failed to raise rates at its last po ..
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