ETMarkets Smart Talk: Why FIIs are turning net sellers in Indian markets and it not because of election jitteriness, explains Niraj Kumar
“FIIs have been net sellers in Indian Markets over the past few years. So, bulk of the selling is not due to election related jitteriness,” says Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd.
In an interview with ETMarkets, Kumar said: “With no major U-turn expected, several domestic focussed sectors are poised to perform well under the new regime; such as Infrastructure, Construction & allied sectors, Cement & Auto,” Edited excerpts:
Sensex hit fresh record highs after the initial dip. Do you think it will be a smooth ride for Modi 3.0?
The electoral outcome, although not in accordance with market expectations, is indeed not a big negative outcome for the markets.
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While the Government will indeed have to take allies on board for major decision making, we expect continuity in economic policy making.
While the incumbent government securing its third term bodes well for market stability, it does juxtapose them with some dependency on allies for imperative policy decisions.
Prima facie, the journey may not be that seamless as the last two terms, given that policy implementation would need the requisite support from allies.
We would anticipate more discussion and consensus building on political topics like One Nation One
