Foreign Flows & Market Earnings Opportunities
- Indian equity markets are facing headwinds from foreign investor outflows, despite solid underlying corporate performance.
- "Most active foreign investor funds are reallocating out of India," sabharwal told ET Now.
- Sabharwal highlighted recent earnings reports as evidence of stability and improvement.
Indian equity markets are facing headwinds from foreign investor outflows, despite solid underlying corporate performance. Market expert Sandip Sabharwal believes the current market phase is driven by global asset reallocation, not a basic downturn in Indian companies.
“Most active foreign investor funds are reallocating out of India,” sabharwal told ET Now. “Money is going into many other markets-Korea, Hong Kong, Brazil-so many markets are getting money, but India is seeing outflows.” He anticipates this trend could continue, even as company data paints a more positive picture.
Sabharwal highlighted recent earnings reports as evidence of stability and improvement. key takeaways include:
- Banking: Axis Bank and Kotak Mahindra Bank are showing increased credit growth with strong asset quality.
- Cement: UltraTech Cement reported strong third-quarter volume growth, exceeding industry averages, with overall cement demand up 9-10%.
- Consumer Goods: Godrej Consumer Products is seeing a revival in demand.
“I do not think things are as negative as what the market screen or the numbers on the market are reflecting,” Sabharwal said. He views the current correction as a buying chance,noting that many stocks are now cheaper than they were recently.