Starting in October, the Indian stock market "carnival" comes to an end.With the slowdown of corporate profit growth, the benchmark index has recently been regulated sharply, and the market’s concerns about the "top" of printing shares have rewinded.

As of the 14th, overseas investors have reduced their holdings of more than 7 billion US dollars in October, the largest monthly outflow since the record in March 2020.At least some of these funds were transferred to the Indian market.

"From the disappearance of the configuration gap between the two countries, it can be seen that the improvement of faith is at the expense of India." Ritesh Samadhiya, a strategist in the United States, said in a report.

Signs of the slowdown in the macroeconomic growth in India are also obvious.Analysts of Jefferies Financial Group Inc. predict that the growth of Indian companies’ profit growth may slow down to the lowest level of more than four years.Agra Stock

The Indian stock market callback, the valuation is still high

The Indian stock market benchmark index fell nearly 3%in October, and the increase in this year has reduced to 15%.

The MSCI India index fell 2.6%in October, and the index had previously risen for 11 consecutive months.Even so, the valuation of the index is almost 24 times that of its 12 -month long -term income, and the average valuation of five years is about 21 times.This is also more than twice the P / E ratio of the MSCI India Index.Indore Investment

In addition, India’s macroeconomic growth has a significant sign of slowing down.In September, the growth rate of Indian goods and service tax income was the lowest level in more than three years, while passenger car sales decreased by nearly 19%year -on -year.Compared with the same period last year, the demand for power in August decreased, and the manufacturing and service industry purchasing manager index declined.

The latest financial report season starting on October 10th is also disappointing. The net income of the Reliance Industries LTD. and Tata Consultation Services LTD.EssenceThe two companies lead the US $ 250 billion of industries, helping enterprise customers adopt automation, cloud computing and artificial intelligence.

Some analysts have stated that the slowdown in profitability was driven by weakening consumption expenditure and rising commodity prices.The French Industrial Bank in Bankaror Asia Rajat Agarwal said:

"The macro momentum is obviously weakenedJinnai Wealth Management. We clearly see that the market generally expects a downward risk, which may put pressure on the market." $ 7 billion in funds withdraw from the Indian stock market

As of the 14th, overseas investors have reduced their holdings of more than 7 billion US dollars in October, the largest monthly outflow since the record in March 2020.At least some of these funds were transferred to the Indian market.

Bernstein’s quantitative strategist lowered the rating of Indian stocks from neutral to reduction last week, because Indian stocks have high valuations for India and other valuations, resulting in their vulnerability increase.

Analysts Rupal Agarwal and Cheng Zhang wrote in the research report released by October 10:

"We ended long -term momentum transactions to India because its valuation is currently at or close to historical highs, and the profit cycle is down."Kanpur Investment

Chennai Investment