India Large Caps Poised to Rebound as Foreign Funds Buy for 4th Straight Week
Updated
Updated · Bloomberg · Jul 13
India Large Caps Poised to Rebound as Foreign Funds Buy for 4th Straight Week
3 articles · Updated · Bloomberg · Jul 13
Summary
Foreign investors turned net buyers of Indian equities for a fourth straight week, a shift strategists say should help beaten-down large-cap stocks narrow their underperformance to smaller peers.
Goldman Sachs, Jefferies and Societe Generale expect large caps to benefit most because overseas investors hold a bigger share of their free float and were the heaviest sellers in the recent downturn.
An improving earnings outlook and cheaper valuations are reinforcing the case for a recovery in India’s biggest stocks.
The call suggests leadership in India’s market could rotate back toward large caps after a period when smaller shares outperformed.