IPOs, weak FII flows to weigh on markets: CLSA

The Indian market is unlikely to make big strides in the near term due to the huge line-up of equity capital raising and selling by foreign institutional investors (FIIs). “With the expected weak trend in FII flows and continued high equity supply, Indian markets will likely end 2017 on a flattish/subdued note,” said CLSA in note dated October 9. The benchmark Sensex and Nifty on Tuesday closed at 31,924 and 10,017 respectively.

According to CLSA, FIIs’ overweight position on India is now lowest in almost five years. “The primary reason for FIIs to reduce India weight is that other cheaper