Foreign portfolio investors (FPI) have pulled out Rs 2,867 crore from Indian markets in July so far, mainly on account of profit booking after a surge in Indian equities. The FPIs pulled out a net Rs 2,210 crore from equities and Rs 657 crore from the debt segment, taking the total net outflow to Rs 2,867 crore between July 1-10, according to the depositories data. FPIs have remained cautious with respect to their investments in Indian equities in July so far. FPIs were net buyers in June with net aggregate investments of Rs 24,053 in the domestic markets in June.
TCS CFO V Ramakrishnan said the worst is over, at least for TCS. As per CEO Rajesh Gopinathan, the company has better visibility now and expects recovery from the third quarter onwards. The confidence comes from the strong order pipeline, interaction with customers who have now stabilised their operations post disruptions and also the kind of opportunities they are seeing. The company is also positive that clients are neither canceling nor renegotiating contracts. TCS is also going ahead with its fresher hiring in geographies such as the US. Gopinathan expects revenue to recover to pre-pandemic levels by the October-December period.
Despite rising coronavirus cases globally, the market ended with gains for the fourth consecutive week. In the week ended July 10, Sensex rose 572.91 points to close at 36594.33, and Nifty50 added 160.65 points to end at 10,768 levels. Vinod Nair, Head of Research at Geojit Financial Services said outlook for the market is volatile as the earnings announcements have begun after a washout first quarter for most industries. Brokerages advised that the volatility is expected to continue in the markets in near term and investors should remain cautious, keep booking profits at regular intervals and focus on stock-specific action.
The long-short ratio on futures positions of foreign portfolio investors (FPIs) touched 65.6% on Thursday before dipping to 57% on Friday. The long-short ratio on FPI positions last week was the highest since March 22, 2019 when it had touched 65.8%. A high long-short ratio signifies that investor sentiment is bullish and vice versa. For example, a long-short ratio that has increased in recent months indicates that more long positions are being held relative to short positions. Shorting or short selling is when a trader borrows shares and immediately sells them and buys them again when the price goes down.