Nomura says record FII selling in India may be peaking
In short
Nomura said foreign investors may be close to ending their record selling of Indian stocks. The report says FIIs sold about $8.8 billion since September 15, but the pace has slowed. It also says earnings were stronger than expected and valuations fell.
This could help Indian markets, including the Nifty. The exact new target and whether selling has fully stopped are not stated.
What the reporting says
Nomura said foreign investor selling in Indian equities may be nearing an end as record outflows since September 15 eased, earnings beat expectations and valuations fell below post-pandemic averages. The source says FIIs sold around $8.8 billion over that period, while companies in Nomura’s BSE 200+ universe posted 34% year-on-year profit growth and beat consensus by 18%. The immediate implication is a possible lift to the Nifty target, but that is not quantified here.
Why it matters
Nomura’s call focuses on Indian equities after foreign investors sold about $8.8 billion since September 15. The report links the easing pace of outflows to stronger-than-expected earnings and lower valuations in its BSE 200+ universe, where profit growth reached 34% year on year and beat consensus by 18%. That combination could support a better view on the Nifty, but the revised target is not stated.