Foreign institutional investment in India is at a 10-year low of about 17%, said Vinay Jaising, managing director of portfolio management services at JM Financial Services Ltd.
"Post-election, we will see a huge inflow of FIIs, be it on debt markets or equity markets. India saw a $5 billion inflow last month and before that, it was around $2.5 billion,” he added.
He also said that the inflow of funds through the SIP route was more than $2 billion a month and further inflows of about 30% came via the pension funds. So, India has currently seen a huge inflow of funds.
According to Jaising, previously in India, the legs of earnings were only coming from the financial sectors and that involved around 30% of the overall index. But currently, in all the sectors except energy and IT, the earnings trajectory is higher.
“Currently, earnings and technical analysis are going India's way, but geopolitical risk is something that may not be in our favour,” he said.
Jaising highlighted the need to look at the domestic market or give more significance to making in India. The nation should look at satisfying its demands through domestically manufactured products. Presently, this is visible as the defence budget, both domestically and globally, has gone up.
“Domestic stories will increase in fiscal 2025 as compared to the current fiscal year for a healthy equity investment return,” he adds.
Amid the backdrop of the listing of IPOs like Doms and India Shelter, Jaising said that the IPOs coming in currently are of better quality. Both the breadth and depth of the market are good for the forthcoming IPOs. This gives investors more confidence.
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