Business
Indian retail investors seem unperturbed by the ‘FII Winter’

Even as the Indian stock markets are volatile and foreign institutional investors (FII) are selling their holdings the retail investors are continuing their investment.
“Indian retail investors are resilient. They form a significant part of the market,” Radhika Gupta, Managing Director and CEO, Edelweiss Asset Management Company told IANS.
She said even in the past, retail investors did not exit when markets went down and it is time to stop focusing on what FIIs do.
The Association of Mutual Funds of India (AMFI) estimates the total collections by the industry under the systematic investment plan (SIP) in May 2022 was Rs 12,286 crore, up from Rs11,863 crore collected in the month before that.
The total number of SIP accounts at the end of May 2022 was more than 5.48 crore, up from 5.39 crore, but the number of new SIP accounts opened last month was 19.75 lakh, down from 21.82 lakh accounts in April 2022.
The SIP assets under management (AUM) at the end of May 2022 was Rs 565,706 crore down from Rs 578,086 crore at the end of April 2022, said AMFI.
“This is the first time in many years that investors’ optimism is being tested. Also, the number of retail investors have ballooned in recent years. Many of these are Do-It-Yourself (DIY) investors who rely on ‘finfluencers’ for advice and (often gamified) fintech platforms for execution,” Jayant R Pai, Head Products and Chief Marketing Officer, told IANS.
According to him, such investors are likely to be more unsettled, compared to those who rely on Financial Planners for advice.
“Hence, it is possible that some SIPs may be cancelled in case this continues for a few more months. Perhaps a perceptible uptick in the number of SIPs being cancelled may also serve as a contrarian indicator (of the market bottoming out),” Pai said.
As per AMFI figures, the number of SIPs discontinued/tenure completed last month was 10.36 lakh down from 10.53 lakh in April 2022.
Gupta said the market is structurally upward in the long term.
Queried whether retail investors continue to invest is an off beat trend Gupta refuted that and added the numbers are steady and SIPs are expected to grow.
She also added that India is a big country and more people will enter the market and one should focus on the investment goals rather than looking at what FIIs do.
On the factors that make FIIs to sell out Pai said: “High food and fuel inflation leading to fear of a tighter monetary regime (which is coming to pass now). Fear of emerging market currencies being adversely affected as a result of the tightening. War in Ukraine, catalysing attendant geo-political tensions and light-to-safety.”
The interest rates in their home country will also make FIIs exit the market, Gupta said.
On the quantum sold by FIIs and purchases by the domestic institutional investors (DII) Pai said: “January to June 2022 figures depict that FIIs sold (net) Rs 2.62 lakh crore while DIIs purchased (net) Rs 2.07 lakh crore. Hence the ballast provided by the DIIs played a key role in cushioning the trajectory of the decline. However, the desultory investment environment has ensured that they could not alter the direction.”
He said the DIIs will have to hunker down for a while. However, those who are investing with their financial goals in mind and can remain invested for at least five years from today, ought not to feel too perturbed about the ‘FII winter’.
Business
Stock market ends lower as investors take cautious approach on US tariffs

Mumbai, April 3: The Indian stock market closed lower on Thursday as investors remained cautious following US President Donald Trump’s announcement of new tariffs.
The new tariff structure includes a 10 per cent tax on all US imports, with higher tariffs on countries with a trade surplus. India will now face a 27 per cent tariff.
The Sensex fell 322.08 points, or 0.42 per cent, to close at 76,295.36. During the day, the index fluctuated between an intraday high of 76,493.74 and a low of 75,807.55.
The Nifty also ended lower, down 82.25 points, or 0.35 per cent, at 23,250.10.
“The primary catalyst for today’s decline was deteriorating global sentiment, exacerbated by US President Trump’s announcement of a 26 per cent reciprocal tariff on Indian imports, which prompted a cautious stance among investors,” said Sundar Kewat of Ashika Institutional Equity.
Tech stocks led the losses, with TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors declining by up to 4.02 per cent.
On the other hand, Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints were among the top gainers, rising as much as 4.57 per cent.
The IT sector was the worst performer, with the Nifty IT index dropping 4.21 per cent, dragged down by Persistent Systems, Coforge, TCS, and Mphasis. Auto, oil & gas, and realty stocks also struggled.
However, pharma stocks performed well, with the Nifty Pharma index climbing 2.25 per cent. Banking, healthcare, FMCG, and consumer durables stocks also saw gains, rising up to 1.94 per cent.
Despite the overall market decline, smallcap stocks outperformed, as the Nifty Smallcap100 index gained 0.58 per cent.
Market analysts stated that investors are expected to remain watchful of global developments and their impact on market trends.
“The domestic market initially showed signs of recovery but ended with modest losses after the announcement of a relatively lower 26 per cent tariff on US imports,” said Vinod Nair of Geojit Investments Limited.
“Although the tariff presents short-term challenges, India’s economic resilience and bilateral trade agreement may help mitigate the overall impact,” he stated.
The rupee ended flat but traded in a volatile range between 85.75 and 85.35, as markets reacted to Trump’s reciprocal tariff policy.
Business
India’s GDP growth projected at 6.7 pc for FY26, cyclical recovery expected

New Delhi, April 3: India’s economy is set to grow at 6.7 per cent in FY26, driven by a cyclical recovery and steady market performance, a new report said on Thursday.
Cyclical recovery refers to the phase in an economic cycle that follows a recession or slowdown, during which economic activity, consumer spending, and business investments start to rise.
Over the past five years, India has witnessed strong earnings growth, with the NIFTY index recording a 20 per cent compound annual growth rate (CAGR), according to a Lighthouse Canton report.
As the economy moves forward, the next phase of growth will depend on key factors such as government capital expenditure, tax benefits for the middle class, and improved consumer demand.
These elements are expected to support earnings recovery and market confidence in 2025, the report said.
India’s investment-led expansion has played a crucial role in economic growth. While the government continues to focus on fiscal discipline, private sector investments are expected to gain momentum, contributing to long-term stability.
The Reserve Bank of India’s recent 25-basis-point rate cut — the first in nearly five years — signals a supportive stance for economic growth.
“India’s economic engine continues to offer long-term promise, however, 2025 will require greater selectivity and discipline,” said Sumegh Bhatia, Managing Director and CEO of Lighthouse Canton in India.
He added that the investors will need to navigate shifting cycles, watch for inflection points in earnings, and remain anchored in fundamentals as the global order undergoes further transformation.
On the global front, market trends and currency movements will influence India’s financial landscape, as per the report.
The strength of the US dollar and rising global trade activity are shaping investment flows, while gold remains a preferred asset due to its resilience amid global uncertainties.
“Additionally, crude oil prices are expected to remain stable, benefiting India’s import-dependent economy,” the report noted.
In 2025, the focus remains on sustainable growth, disciplined market strategies, and long-term investment opportunities, it added.
Business
Institutional investments in Indian real estate up 31 pc at $1.3 billion in Q1

New Delhi, April 3: Institutional investments in India’s real estate sector saw a strong start to 2025, with total inflows reaching $1.3 billion in the first quarter, a new report said on Thursday.
This marks a 31 per cent increase compared to the same period last year, driven largely by domestic investors, according to the report by Colliers India.
Domestic investments played a significant role in this growth, contributing $0.8 billion, which is a 75 per cent rise on a year-on-year (YoY) basis.
These investments were mainly directed toward industrial, warehousing and office spaces. The office segment alone attracted $0.4 billion, making up one-third of the total investments.
Hyderabad emerged as a key market in this segment, drawing more than half of the office-related inflows. The residential sector also witnessed a remarkable rise, with investments almost tripling compared to the first quarter of 2024.
The segment attracted $0.3 billion, accounting for 23 per cent of total investments, a figure comparable to the industrial and warehousing sector.
Interestingly, foreign investors led the residential investment surge, contributing over half of the total inflows in this segment.
The industrial and warehousing sector continued its strong performance from 2024, recording over $0.3 billion in investments during the first quarter of 2025.
This represents a 73 per cent increase YoY, supported by rising investor confidence.
Positive macroeconomic indicators, such as India’s manufacturing purchasing manager’s index (PMI) reaching 58.1 in March 2025 — the highest level since mid-2024 — have reinforced optimism in this sector.
The robust demand, higher production, and improved business confidence have all contributed to this growth, the report said.
Mumbai emerged as the top investment destination, accounting for $0.3 billion, or 22 per cent of the total inflows in Q1 2025.
Bengaluru followed with a 20 per cent share, while Hyderabad secured 18 per cent of the investments, according to the report.
In Mumbai, mixed-use assets attracted over half of the total inflows, whereas Bengaluru saw a majority of investments in the residential sector.
City-wise data show a massive 841 per cent rise in investments in Mumbai, compared to Q1 2024, while Delhi-NCR also experienced significant growth with a 145 per cent increase.
The report also found that Bengaluru saw a steady 26 per cent rise in investments during the same period.
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