Tuesday 27th October 2020

NIFTY’S EMPTY 10000 MARCH

Jul 22nd, 2017 3:12 pm | By | Category: LATEST NEWS

(By Bhagyashree Pande)
The Nifty is touching a 10000 mark most likely the next week , some say it has touched the figure but behind the so called successful rally are there investors of real weight present? Most large investor say the rally is an empty one led by bulls even though the fundamentals of the economy are not strong to support the rally. It is very short term and not like the earlier rallies where the foreign investors poured in big money to drive the rally despite rupee reaching 64 to a dollar.

Contrast the present rally with the one in 2012 when Indian stock market was acclaimed to be the “best performing market in the world” the confidence of FIIs was such that they had pumped in $31.01bn(80pc being in equity). Today the FII investment is only of $7.46bn (which includes equity and debt investment). So why is foreign investor shying away from lucrative Indian stock market ? FIIs make investments in markets on the basis of their perceptions of expected returns from markets they invest in. Their perceptions among other things are influenced by the prevailing macroeconomic environment, the growth potential of the economy,and corporate performance in competing countries say economist.

So will the foreign investor rush to Indian stock markets after the 10000 rally ?Most people in the stock market say No they will not be enthused by the numbers they will keep watching the fundamentals of the Indian economy and how it performs going ahead unless they get the confidence they will not pour in their money.

Nifty’s Empty 10000 march

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