While the Dow Jones declined 10% year-to-date, India’s Nifty has outperformed with a gain of around nearly 4% so far in the calendar year. Further, Nifty may move towards 21,200 in the calendar year 2023, said ICICI Direct.
“Low leverage among heavyweight sectors like banking and technology to lead Nifty towards 21,200,” ICICI Direct said.
“After one year of continued outflows, the BFSI space has started witnessing fresh flows in the last two quarters where banking was the major beneficiary. We expect the same trend to continue in CY23 as well, it added.
Equity markets have witnessed the return of foreign funds since July 2022. They turned net buyers of almost Rs 84,000 crore.
However, the brokerage firm expects volatility to remain subdued in the coming weeks extending decoupling from the globe. FPI flows to remain strong due to continued outperformance of India, it said.
Banking and financial services together gained almost 11% in the calendar year 2022. However, financials underperformed banks, while private and PSU banks were the leaders with a gain of more than 22%.
“The technology sector started witnessing flows post September, which is the highest ever seen in more than three years. Financials have seen the largest chunk of flows due to their weight. We expect the same trend to continue.” the brokerage firm said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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