NiftyforAll: Weekly Review 21st May 2018

Sunday, May 20, 2018

Weekly Review 21st May 2018

Dear All,

While every traders & Investors eyes on Karnataka Election - Crude OIL - Currency Tussle - Trade War, Many forget the Importance of MSCI which included 234 Chinese A shares into their Index. Which means, So for Chinese Government controlled Financial market is now open for International community.

India’s weightage in the MSCI Emerging Market Index is likely to fall 20 basis points as a result of inclusion of China A-shares, which would entail total outflows of around $540 million by passive funds.

Already we have seen many quality Mid Cap and Large cap Stocks are falling substantially, while Nifty and BankNifty making their Life high. As a result many fund managers and Portfolio Builders are in deep loss.

Fund managers already estimated an outflow of $300 - $400 Billion in funds outflow. Some foreign investors who take a long-term approach to China include J.P. Morgan Asset Management, which plans to double coverage of China A-shares to 250 by the end of 2018. So the Process is going to be a Long term approach rather than a short term, meaning the outflow is not an one time process, it might be a continuous one.

Credit Suisse also expects S.Korea, Taiwan and India may see a Largest dilution in their Stock Weight of their MSCI emerging market index.

Combines with Political Un stability as Anti Modi campaign gaining momentum with Karnataka Election outcome, its time to be cautious. Lets go to technicals.

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