homemarket NewsCNBC TV18 Market Sentimeter: 55% experts blame downturn on economic slowdown, 60% want incentive to boost domestic investments
CNBC-TV18 Market Sentimeter: 55% experts blame downturn on economic slowdown, 60% want incentive to boost domestic investments
Around 55 percent of market experts believe that the sharp decline in Indian markets is due to the economic slowdown in the country while just over a quarter (27 percent) of the experts blame a lack of stimulus or reforms by the government, a social media poll conducted by CNBC-TV18 on Friday has revealed.
Around 55 percent of market experts believe that the sharp decline in Indian markets is due to the economic slowdown in the country while just over a quarter (27 percent) of the experts blame a lack of stimulus or reforms by the government, a social media poll conducted by CNBC-TV18 on Friday has revealed.
In the CNBC-TV18 Market Sentimeter poll, about 18 percent of the experts attributed the liquidity crisis and lack of government action on the crisis in the non-banking financial companies (NBFCs) as reason for the market downturn. Interestingly, selling by foreign portfolio investors (FPIs) due to the new surcharge levied in last month's Union Budget wasn't chosen as a reason by any expert.
Around 60 percent of the respondents are of the opinion that offering tax incentives to domestic investors will help revive markets, while 20 percent of the experts believe a revival of private sector investments through sops and incentives will address the sluggishness. Another 20 percent said that a roll back of the FPI surcharge would help revive market sentiment.
In the aftermath of the Lok Sabha exit polls and the subsequent announcement of results, the markets rallied and Nifty broke the 12,000 point barrier. However, the benchmark indices have since been on a continuous decline.
Around 45 percent of the respondents have the downside expectation for the Nifty to be 10,500 to 11,000 while the same number think it will between 10,000 and 10,500. The remaining 10 percent of the experts expect the downside to be in the 9,500-10,000 range.
However, on the expected upside over the upcoming 12-month period, exactly half the respondents see it between 11,500 and 12,000. Around 30 percent believe it to be in the 11,000-11,500 range while 20 percent expect it to surpass the 12,000 mark again in the next 1 year.
On the topic of tactical positioning in the current market environment, about half the respondents have aligned towards mid and small caps, 30 percent went for technology stocks and the remaining 20 percent put their eggs in the financials basket.
On the question of investment flows in the country in 2019, about 80 percent expect inflows from foreign institutional investments (FIIs) to be net negative and those from domestic institutional investors (DIIs) to be net positive. Ten percent of the experts expect inflows from FIIS to be net positive and DIIs to be net positive while the remaining 10 percent see FIIs to be net positive and the DIIs net negative.
First Published: Aug 2, 2019 4:43 PM IST
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