Adani news, China re-opening likely to hit foreign inflows keeping markets volatile
As the Adani issue continues to impact the Indian market, investors are reportedly considering a shift in allocation towards China, according to Marko Papic, Partner and Chief Strategist at Clocktower Group on CNBC-TV18.
As the Adani issue continues to impact the Indian market, investors are reportedly considering a shift in allocation towards China, according to Marko Papic, Partner and Chief Strategist at Clocktower Group on CNBC-TV18.
Hindenburg, an investment research firm, released its research report on the Adani Group. The report, claimed to be based on research spanning over two years, alleged that Adani Enterprises and other group companies were "engaged in a stock manipulation and accounting fraud over the course of decades". After the release of the report, Adani Group entities faced a sharp correction in the stock market.
Papic said, “Pivot in Chinese policy has a woken appetite for China allocation by many institutional investors and that creates a very pernicious context for India. A context in which something like the Adani group crisis then becomes just a spark that forces many CIOs to shift allocation away from India and towards China.”
Meanwhile, Krishna Kumar Karwa, MD of Emkay Global said that the Indian market has been volatile lately, driven by global flows and foreign portfolio investment (FPI) selling. The selling has been significant and is likely to be deployed in other markets like China.
He said, “We expected the markets to be volatile and primarily driven by global flows. And we have seen that in the last one month, almost Rs 25,000-30,000 crore of FPI selling has happened. So that money has possibly gone in other emerging markets like China, etc.”
As the global economic landscape continues to change and evolve, investors are keeping a close eye on market developments in India and China. The Adani issue has become a major concern for investors, and many are considering alternative markets for their investments.
China, on the other hand, has been experiencing steady growth and stability, making it an attractive destination for investment. With a thriving economy and a favourable business environment, China is becoming an increasingly popular destination for investors.
Despite the potential shift in investment allocation towards China, experts predict that the market will remain volatile in the coming months. Global flows and FPI selling will continue to drive market movements, making it important for investors to stay informed and make informed decisions.
In conclusion, the Adani issue has made investors reconsider their allocation towards India and consider alternative markets. While China presents a promising opportunity, the market is expected to be volatile soon, driven by global flows and FPI selling. As always, it is crucial for investors to stay informed and make well-informed decisions for their investments.
Adani group stocks extended gains on Tuesday.
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