Investors may keep turning to safe stocks over uncertainity: Credit Suisse

Credit Suisse expects the country’s narrow market performance to continue, as the economic uncertainty continues to push institutional investors towards “safe” stocks, thereby resulting in higher market concentration.

“Investors are reacting to the weak economic activity, and the sharp drop in growth has started showing up in revenue growth.

The buys have been most concentrated over the last three years, particularly for domestic institutional buyers,” said the brokerage. Close to 76 per cent of foreign portfolio investors’ (FPIs) holdings are in Nifty stocks, compared to 66 per cent for domestic institutional investors (ratio for DIIs was 56 per cent last year).