Is Nifty facing the heat ? Is Nifty under pressure ?
Due to Russia-Ukraine war, there is a pressure to global indices as well as Indian market.
- Indicators of Indian Equity shows a pressure, but seems low comparative to major global indices. About 35% of Nifty 50 constituents, 50% of the BSE Sensex currently trading above the 200 DMA compared with 26% for global indices.
- As per the technical analysts, a 200 DMA perceived as a crucial support level for stocks and indices.
- As per Chris Wood (Hong Kong based): “Net inflows into domestic equity mutual funds have totaled US$6.8 billion in the first 2 moths of this year 2022. While Foreign investors have sold a record net US$14.9 billion worth of Indian equities so far this quarter “.
- Wood also said that ,the strong rebound in Non-oil and gas imports shows the economic recovery post the delta wave of Covid-19.
- Foreign Investors have been offloading Indian Stocks since October 2021, when they last hit record highs. The Outflows, triggered by worries on aggressive rate hike plan and liquidity withdrawal by the US Federal reserve, got exacerbated by the Russia-Ukraine tensions.
- In a recent note ICICI Securities said the trailing 12 month selling by foreign portfolio Investors has eclipsed outflows seen during the global financial crisis.
- Following a months long drubbing , the S & P 500 delivered its best weekly gain since November 2020 as investors cheered increased clarity on monetary policy and an encouraging assessment of the U.S. economy from the Fed.
- JP Morgan earlier in the week forecast the S & P 500 would end the year at 4900, about 10% of Friday’s close, saying that markets “have now cleared the much anticipated Fed Lift off with policy likely as hawkish as it gets”
- As per Goldman “Market too relaxed on Ukraine Risk”. Europe’s Benchmark Europe 600 index is close to erasing all of the losses sustained since Russia’s invasion of Ukraine on Feb 24, while the S & P 500 is now trading higher than where it closed on the eve of the attack.
