Foreigners buy, but play safe in Indian stocks: Citi
|
Foreign institutional investors (FII) have been acting "fairly bullish" in Indian stocks, judging by their $11 billion in inflows into equities so far this year, but they have played it safe, according to a Citigroup study of their shareholdings.
FIIs are trimming their bigger overweights, such as financials and industrials, as well as some of their underweights such as IT services and energy, Citigroup says in a report on Friday.
"It's a lot of money that has come in, but it is not taking too many chances," the analysts add.
Still, Citigroup says foreigners portfolios are positioned for higher markets, tilting towards cyclical stocks, including banks, consumer discretionary and industrials.
By contrast, domestic investors remain sellers, buying into staples, materials and industrials, while being underweight on banks.
Citi sees market upside from current levels, with a Sensex target of 18,400 by December, and expect "only modest returns" from here.
- Breakingviews - Gold moves back to the brink Read 297 Times
- Hedge funds back to selling gold after propping market a month ago Read 195 Times
- 4600% windfall for Amitabh from Just Dial Read 176 Times
- Gates reclaims world's richest person title Read 168 Times
- Gold falls on stronger dollar, heads for worst week in a month Read 127 Times
