Residential and commercial buildings stand in the Bhendi Bazaar area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg.)

Indian Stocks Unlikely To See Gush Of Outflows, Says Avendus Capital

Indian stocks have received a gush of inflows mostly from exchange-traded funds. While this type of passive money tends to be volatile, the chances of it leaving the domestic market at an equally frantic pace are quite low, according to Andrew Holland.

Foreign funds have pumped in more than $6 billion into Indian stocks this year on optimism of a revival in company earnings, continued low interest rates and the reinstatement of the incumbent national government.

“The active funds would take a little bit longer to reach the market and could most likely return post the upcoming general election,” Avendus Capital Alternate Strategies' Chief Executive Officer said in an interview to BloombergQuint.

Holland said that he expects the banking sector, especially the large-cap banks, to witness good returns in the future, while the automobile sector would continue to remain under pressure for about six to nine months.

Watch the full conversation here:

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