The United States of America has recorded a 40-Year High Inflation rate of 7.9%. Here, the increased price of oil and gas has not been accounted for. The Gasoline price has touched the mark of $4 per gallon.
An interest rate hike of around 0.25% is expected by Federal Reserve this month.
BJP won 4 out of 5 State elections including Uttar Pradesh, Uttarakhand, Goa, and Manipur. AAP wins in Punjab. The ruling party BJP winning majority states, easing Russia-Ukraine War, and falling oil prices kept the Indian markets on green yesterday.
From 30th September 2021 to February 2022, the total Foreign Portfolio outflow is around $19 Billion or Rs. 1.42 Lakh Cr. Total Foreign Portfolio Inflows was around $38 billion or Rs. 2.85 Lakh Cr. In the Indian market between April 2020 to September 2021.
In February 2022, total foreign portfolio outflows from the equity market are $4.7 billion or around Rs. 35,000 Cr. The major selling off was done in the IT sector- $1.45 billion or Rs 10,875 Cr., Banking Industry-$1.32 billion or Rs. 9,900 Cr., Energy Sector- $638 million or Rs. 4,785 Cr, and FMCG Sector- $584 million or Rs. 4,380 Cr.
Credit Growth in Indian Banking Industry is expected to be in single-digit figure i.e., 8%-9% in FY22. This lower credit growth is one of the major reasons behind heavy Foreign Portfolio selling in Banking stocks. The reason for heavy selling in IT stocks is due to its premium valuation
Morgan Stanley cuts FY23 earnings forecast by 8% on Indian Markets. Earlier, it has given the target of 25% which has now reduced to 17%. But, here Morgan Stanley has increased the target for FY23 from 19% to 26%. Further, it has also given the target of Sensex on base case scenario of around 62,000 levels by December 2022, but on the bull case and bear case scenario, targets of Sensex by Morgan Stanley are 75,000 and 45,000 respectively.