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Why fii's are still leaving the market and why you should also remain cautious!
Fii's have been on a hot selling spree since August and it seems like they are not in any mood to stop , so let's discuss some of the reasons why fii's are leaving the emerging market india Gov increased capital gains tax last year, Plus rupee is just free falling against dollar , which in turn affects fii's profits quite significantly , Plus companies earnings are also not showing good growth now therefore it makes no sense for them to come from us to india cause risk reward ratio is not much better than us market Now let's talk about our economy, you must have heard from many finfluencers that gov Capex had last year reduced drastically due to elections and all , and it will soon pick up as elections are over , from last two quarters same reason and what not , but let's talk about the reality From where do you think money for freebies is coming? Have politicians stopped corruption? Nah , it's the Capex money going to freebies , that's why many states are having trouble paying gov employees salary and all And due to the freebies schemes Plus recent hikes in import duty on edible oil,etc and other taxes we are facing high inflation Maharashtra ladli behan yojna budget is more than INR 40k cr , their state gov have recently announced many mou's with big companies of some lakhs crores and all , but do you really think all of them will come into action and if they will then when will that happen Gov has failed to capitalize on us china conflict and we are still nowhere in terms of manufacturing, it's the service sector and food exports which has saved our economy but how long can that sustain ? Due to more rate cuts rupee will fall more , and we as a net import country will suffer from high inflation Also beware of finfluencers who gives you false hope that everything will recover and will go with long term baby long term , Real value in bear market blah blah stuff Analyse the company yourself listen to concall checkout how company's peers are performing and whether the company's management is delivering on what they promised, and how will your company perform in a more bloodbath market, in a economy which is facing headwinds Invest in us market too , take the advantage of dollar appreciation against usd, Plus your holding share price appreciation , believe me it's great1
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