Don’t miss out action in these Small-cap stocks with significant FII holdings!
After back-to-back formation of bearish candles, just as the doomsayers were settling back to witness more declines, the market turned around. Sentiments improved on D-Street
What a week of trading it was for the Indian benchmark indices, with the NSE benchmark Nifty50 displaying nine successive red candles. It was only a matter of time before a rally emerged. Whether you call it a dead cat bounce or something else, a rally is still a rally. And so, it was.
After back-to-back formation of bearish candles, just as the doomsayers were settling back to witness more declines, the market turned around. Sentiments improved on D-Street after US-based GQG Partners invested Rs 15,446 crore in group companies and the market huffed and puffed its way to finish the week in the green. Granted, the effort produced only a 0.75 per cent rally compared to a sharp decline of 2.67 per cent in the prior week. But the point to note is that the market did not continue lower when most people were expecting it to and as a result, that can be seen as a change in sentiment, at least for the short term.
Market participants should take note of another key observation: In January, the Dollar Index (DXY) reached a high of 105.63, followed by a low of 100.82 in February. Although the index retraced back towards the January high, the retracement from February lows was slower. Furthermore, the index has been unable to clear the resistance of the golden ratio, which is the 61.8 per cent retracement level of the decline from the high of November 21, 2022, to the low of February 02, 2023. From a market direction perspective, a reversal in the DXY indicates that risk appetite is returning to the markets, which could lead to higher inflows from foreign investors.
Buckle up, folks! The winds of change are blowing on D-Street and it looks like risk appetite is making a comeback. We've scoured the markets and put together a list of Small-Cap stocks where Foreign Institutional Investors (FIIs) hold a significant stake. Don't miss out on the potential rewards of these under-the-radar gems!
Attention all investors! Have you taken a position in any of the stocks we just mentioned? Don't keep it to yourself – share your thoughts in the comments below!