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    FIIs remain constructive towards India: White Oak Capital Management

    FIIs remain constructive towards India: White Oak Capital Management

    FIIs remain constructive towards India: White Oak Capital Management
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    By CNBCTV18.com  IST (Published)

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    White Oak Capital Management's Aashish Somaiyaa is of the opinion that though there have been instances of FII outflows in November and Dec the foreign institutional investors are still constructive about the Indian markets.

    The Indian markets are under pressure in recent trade having corrected approximately 5 percent in the past month. The opinion is divided on whether money will flow out of emerging markets or not in the near-term future as Dalal Street looks set for a correction after having a stellar run in the past six months. White Oak Capital Management's Aashish Somaiyaa is of the opinion that FIIs (foreign institutional investors) are still constructive about the Indian markets.
    “People do think, seasonally, that everybody is on holiday in the Western world, etc. In fact, there have been many instances where foreign institutional investors (FIIs) have had significant flows in the months of November and December. So our sense is nothing to be taken for granted. I won't be surprised if towards the fag end things start reversing because as far as India itself is concerned, fundamentals are relatively solid,” he said.
    There are two main worries for the market currently. One is the threat due the US Federal Reserve is gearing up to taper bond purchases faster than anticipated. The other is the spread of the Omicron COVID-19 variant.
    Somaiyaa believes that the news around Omicron is becoming clearer and the fact that the infected are showing only mild symptoms as of now, should help.
    “Given that there is no surprise in this, and given that there is no unknown, the chance for surprise is only on the positive. As far as negatives are concerned, I think with the second wave, people are mentally as well as in terms of infrastructure, relatively, probably better prepared. So I would dare say that we are well placed to face it, at least from the market perspective,” he said.
    Is the correction a time to buy the dips? Somaiyaa sees it as one.
    “One must take advantage of these corrections and my personal experience tells me that there is actually a lot of money on the sidelines,” said Somaiyaa.   
    On his top sectoral pick, he said that the top four-five banks will benefit from better loan growth going forward.
    For a ball-by-ball action of today's (December 6) market action, click here
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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