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India Markets Weekahead: Quality stocks to stand out in next rally

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

Reality finally dawned on the markets and we saw a sharp correction in the last two trading sessions. The Nifty closed at a two-week low of 7603, down 2.41 percent for the week.

Modi mania seems to have abated temporarily and international developments played a bigger role in influencing sentiments. The quarterly results have so far been mixed but decisively points to a slower growth this quarter.

People watch a large screen displaying the benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai December 9, 2013. REUTERS/Mansi Thapliyal/FilesThe fiscal deficit in the first quarter has already crossed 56 percent of the annual target, and one wonders how the government will achieve the steep revenue target unless the economy starts firing on all cylinders. As of now, that seems a few months away.

The monsoon improved dramatically, but deficit still hovers at 22 percent. Haryana, Punjab and western UP witnessed intermittent rains, which is a concern. Late rains could improve the statistical data but would create practical issues for agricultural production.

Why FIIs are dumping India

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Indian stock market is in a tizzy as foreign institutional investors (FIIs) seem to have pressed the sale button. Securities and Exchange Board of India (SEBI) data shows that while there was a considerable slowdown in FII inflow in March, we are seeing an outflow in April.

While net FII inflow in the equity markets remained above $4 billion for each month between December 2012 and February 2013, the net inflow for March was reduced to $1.68 billion. The trend reversed and during April 3-10, there was a net outflow every day, with cumulative outflow of $269 million during this period.

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