{"id":718441,"date":"2013-03-29T15:39:20","date_gmt":"2013-03-29T10:09:20","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=718441"},"modified":"2013-03-29T15:39:20","modified_gmt":"2013-03-29T10:09:20","slug":"the-great-rotation-into-debt","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/03\/29\/the-great-rotation-into-debt\/","title":{"rendered":"The Great Rotation into Debt"},"content":{"rendered":"<p>It used be that news about increasing FII flows brought cheer to the markets. However, in spite of them bringing in close to $10.3 billion dollars since the beginning of this year, the market has been in an interminable\u00a0funk.<\/p>\n<p><a href=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/fii.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-718451\" alt=\"FII Investments - India\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/fii.png\" width=\"776\" height=\"436\" srcset=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/fii.png 776w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/fii-300x168.png 300w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/fii-500x280.png 500w\" sizes=\"auto, (max-width: 776px) 100vw, 776px\" \/><\/a>Market action doesn&#8217;t seem to concur with FII bullishness. Are FII faith misplaced? At first, the market expected a whiz-bang budget and capitulated once that turned out to be a damp squib. And now it appears that investors have latched on to the political goings on to feel depressed about.<\/p>\n<p><a title=\"CNX 500 index\" href=\"http:\/\/stockviz.biz\/Indices?TICKER=CNX%20500\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" alt=\"CNX 500 Chart\" src=\"http:\/\/stockviz.biz\/adhoc\/b9823d493c7f4a71a368649b15541953635001640999466456.png\" width=\"745\" height=\"700\" \/><\/a><\/p>\n<p>Underneath it all is the exodus of domestic investors out of Equities. Since July 2012, Indian mutual funds pulled out more than $3.6 billion out of equities and piled into debt.<\/p>\n<p><a href=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/dii.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-718471\" alt=\"Domestic Investors - India\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/dii.png\" width=\"839\" height=\"429\" srcset=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/dii.png 839w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/dii-300x153.png 300w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/03\/dii-500x255.png 500w\" sizes=\"auto, (max-width: 839px) 100vw, 839px\" \/><\/a><\/p>\n<p>For every single month since July 2012, domestic investors have rotated out of equities and into debt to a grand total of $58.2 billion. Given the recent volatility in the stock market, it would be no surprise if domestic investors continue to herd into debt funds. The big question on my mind is how long will FII flows continue into equities if domestic investors continue to sell into them?<\/p>\n<h6 class=\"zemanta-related-title\" style=\"font-size: 1em\">Related articles<\/h6>\n<ul class=\"zemanta-article-ul zemanta-article-ul-image\" style=\"margin: 0;padding: 0;overflow: hidden\">\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/www.rediff.com\/business\/report\/fii-inflows-have-failed-to-cheer-markets-in-2013-so-far\/20130326.htm\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/155089027_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/www.rediff.com\/business\/report\/fii-inflows-have-failed-to-cheer-markets-in-2013-so-far\/20130326.htm\" target=\"_blank\">FII inflows have failed to cheer markets in 2013 so far<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/www.thehindu.com\/business\/Economy\/chidambaram-lays-down-new-international-practises-on-fdi-and-fiis\/article4462354.ece\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/148755776_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/www.thehindu.com\/business\/Economy\/chidambaram-lays-down-new-international-practises-on-fdi-and-fiis\/article4462354.ece\" target=\"_blank\">Chidambaram lays down new international practises on FDI and FIIs<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/business.financialpost.com\/2013\/03\/28\/investment-strategist-jim-furey-on-rotating-investment-from-bonds-to-stocks\/\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/155857571_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/business.financialpost.com\/2013\/03\/28\/investment-strategist-jim-furey-on-rotating-investment-from-bonds-to-stocks\/\" target=\"_blank\">Investment strategist Jim Furey on rotating investment from bonds to stocks<\/a><\/li>\n<\/ul>\n<div class=\"zemanta-pixie\" style=\"margin-top: 10px;height: 15px\"><img decoding=\"async\" class=\"zemanta-pixie-img\" style=\"border: none;float: right\" alt=\"\" src=\"http:\/\/img.zemanta.com\/pixy.gif?x-id=771713f2-dc44-44a7-9b2d-6272a81e5e42\" \/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>It used be that news about increasing FII flows brought cheer to the markets. However, in spite of them bringing in close to $10.3 billion dollars since the beginning of this year, the market has been in an interminable\u00a0funk. Market action doesn&#8217;t seem to concur with FII bullishness. Are FII faith misplaced? At first, the &hellip; <\/p>\n","protected":false},"author":2,"featured_media":718511,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[1011],"class_list":["post-718441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-your-money","tag-economy","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/718441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=718441"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/718441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/718511"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=718441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=718441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=718441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}