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India remains most favoured among FIIs

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ET Intelligence Group: India has turned out to be the most consistent investment destination across all markets for foreign investors. The Nifty, along with the Dow Jones Industrial Average, over several time-frames has beaten all global indices and consistently figured in the top quartile in dollar terms.

Over a period of one, three, five and ten years, Nifty’s dollar adjusted returns were at 6 per cent, 42 per cent, 53 per cent and 150 per cent in dollar terms. This is despite the rupee losing sharply against the US currency in the past one year.

The performance could further improve in the coming weeks as the Nifty is poised to cross the 12,000 mark according to experts. “Nifty is not going to stop here. For the current expiry, maximum calls are sold at 12,000, which means Nifty can approach 12,000 level towards the April expiry,” said Amit Gupt, head derivatives, ICICI Securities. “Another 400 points is possible till the election outcome. Open interest is quite low as foreign institutional investors (FIIs) are covering their short positions,” he added.

Chandan Taparia, derivatives analyst with Motilal Oswal also confirms Gupt’s view. “After 12 trading sessions, the Nifty has broken out of the consolidation level. FIIs are writing puts at all immediate strike prices which also supports Nifty heading towards the 12,000 levels.”

Source: Economic Times