stock market
There is hope of a good revival in the stock market once again. The reason is that the market is getting the support of ‘double engine’. In fact, on one hand, foreign investors (FIIs) have started investing money in the Indian market again, while on the other hand, our domestic mutual funds are also reducing their cash reserves and buying shares heavily. With the coming together of these two, huge liquidity is coming into the market, which can become a strong basis for the next rise in the market. When big institutions inject money into the market, its direct benefits are visible on the returns of good stocks and mutual funds.
Foreign investors returned after four months
So far in the month of July, foreign institutional investors have invested Rs 15,559 crore in Indian shares. This figure is also important because before this, foreign investors were only withdrawing money from the market for four consecutive months. During this period, he had made huge sales of about Rs 2.60 lakh crore. Now the market sentiment has changed with his return. Analysts at global brokerage firm Goldman Sachs believe that due to India’s economic growth, stable currency and low commodity prices, there is still a lot of scope left for foreign investment.
Cash reserves of mutual funds at low level
Along with foreign investors, domestic mutual funds are also buying heavily in the market. In June, equity mutual funds have reduced their cash holdings by about Rs 4,564 crore. Now the cash ratio of the mutual fund industry has fallen to 4 percent, which is the lowest level in many years. In simple language, instead of saving money with themselves, fund managers are now investing it directly in the market. From the country’s largest fund ‘Parag Parikh Flexi Cap’ to SBI and Motilal Oswal Mutual Fund, they have made big cuts in their cash balance.
Which stocks are the giants eyeing?
Now the question is where is all this money being spent? Big asset management houses like Axis Mutual Fund and Canara Robeco are currently seeing more opportunities in large-cap stocks. He believes that sectors like banking, consumer discretionary, capital goods and manufacturing are still getting the right valuations. However, not everyone is thinking the same way. After the sharp rally in mid and small cap stocks, some fund managers have become cautious, which is why funds like Quant and Nippon India have increased their cash instead of investing money in the market.
Will Nifty go to 26,500?
Goldman Sachs estimates that by June 2027, Nifty may touch the level of 26,500, which is about 10 percent more than the current level. The brokerage believes that as the economy recovers, investors will turn to value stocks instead of growth stocks. However, this rise will also depend on how the quarterly results of the companies come and how the global situation is.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
