FIIs will take huge advantage of double discount in Indian stock market..
TLDR: FIIs have sold alot and Indian stock markets are at low valuation. Rupee is getting hammered too real bad. So there will come a pivot point when FIIs go insane Indian markets due to this double discounting effect and invest heavily creating a market rally.
Hi guys,
Im a rather beginner in investing but today I got to thinking that FIls sold alot in Indian stock markets and valuations are low as P/E dicates.
Rupee has been hammered too real bad bcz of Oil conflicts and is worst performing Asian currency.
Now I read China and Japan's markets and currency movement vs USD which states that China does non dollar energy/oil trades + its tech and manufacturing sectors bring in lots of forex whereas Nikkei is one of best performing even with Yen weakening due to companies majorly earning in US dollars causing higher revenues and profits..
So I think when crude oil price declines (85-90$ maybe) as war situation stablizes and when Rupee remains stable for 2-3 weeks in a range or starts strengthening, there will come a huge pivot when FIIs go aggresive in Indian markets due to this double discounting effect creating a major market rally.
This had happened in 2013 and 2020 (Al indicated) and I feel our Banks and IT stocks will gain very quickly maybe stocks lile HDFC Bank (low valuation but big player), ICICI Bank (strong banking stock) Infosys (major dollar revenue 50-60% maybe)
Tried to kept it as short as possible after researching for past 1.5 hour.
I am not giving any recommendations but only pointing out a view.
Im very curious what do people think and encourage you all to give your views on my thought.