Foreign investors bought Indian equities worth ₹5,107 crore in February after pulling out more than ₹25,000 crore in the previous month. However, their sentiment towards India remains cautious due to the recent run-up in stock prices.
Foreign investors have adopted a cautious approach this month, offloading domestic equities worth Rs 13,000 crore in the first three weeks owing to high valuations of Indian stocks and surging US bond yields. In contrast, foreign investors are bullish on the debt market and injected Rs 15,647 crore in the debt market during the period under review, data with the depositories showed.
The relentless investments by domestic investors have resulted in an unprecedented rally in smallcap stocks. However, some of these stocks are still trading below their 5-year average price-to-earnings ratio (P/E). Analyzing the valuation, we have shortlisted 10 multibaggers that are worth considering. Neuland Laboratories, Quick Heal Technologies, Welspun Enterprises, PTC India Financial Services, ITD Cementation India, Responsive Industries, Indraprastha Medical Corporation, Anant Raj Ltd, Capacit’e Infraprojects, and Mishtann Foods are the 10 shortlisted stocks with an annual turnover of over Rs 100 crore. This article provides insights into the financial performance of each of these stocks and the outlook for smallcap stocks in 2024.
Market expert Sudip Bandyopadhyay discusses the impact of RBI’s policies on the banking sector and shares insights on the trajectory of Nifty Bank. He also talks about the upcoming IPOs and gives an outlook on the trends to watch for FIIs in the Indian market.
US and European firms are redirecting their investments away from China to other developing markets, with India being the top recipient. This shift highlights concerns over China’s business environment, economic recovery, and politics that weigh on the minds of foreign investors. The value of US and European greenfield investment in India has increased significantly, while investment in China has significantly reduced. While diversification is underway, it will take years for advanced economies to achieve their objectives of reducing exposure to China due to its crucial position in global supply chains.
Srikanth Subramanian, CEO of Kotak Cherry, advises investors to focus on large caps with some allocation to midcaps and smallcaps. He highlights the importance of good corporate governance and clean management when selecting stocks. Subramanian also discusses the impact of US Fed rates on equity markets, the strength of the US Dollar, and the performance of Indian equities. He concludes by emphasizing the positive outlook for small & midcap stocks and the interest of foreign investors in Indian equities.
