What has an interesting thing Jefferies said about India? | India becomes FDI king.

 

What has an interesting thing Jefferies  said about India? 

You must have read many full forms or would be interested to know. Today we are going to tell you about a full form related to business. Its name is Tina. TINA factor means there is no alternative, that is, there is no better option than India. These things were said by the research wing of the State Bank of India in a note on August 30. Let us now tell you why we have brought this topic in front of you.

All foreign analytics market research experts and global rating agencies are positive about India. That is, they feel that there is no other option to invest better than India. There will be plenty of earning opportunities in shares related to all the consumption. There are also such sectors in the market, in which there is going to be an opportunity to make money. Now let us know, what is the report about which there has been so much outcry? You must have heard the name of Jefferies.

Jefferies is America's multinational investment and financial services bank. It has said an interesting thing about India. Things are interesting because you will find some things sweet and some bitter. Let's start with the sweet first. Foreign Institutional Investors (FIIs) are increasing their investment in India due to the lack of better investment options from India across the world. Since June 2022, the pace of their investment is increasing continuously.

The market momentum and sentiment are improving due to the continuous inflow of FIIs. Its direct effect can now be seen on Nifty also. Nifty has given returns of more than 11% in the last six months. Jefferies has also given a sector-specific report on the Indian market. Jefferies believes that consumption has increased in stocks related to consumption, due to which consumption stocks are looking good.

On the other hand, stocks in the hotel and auto sectors are in a good position due to an increase in urban consumption, driven by increased rural demand in these tax-linked consumption stocks. People are shopping fiercely in villages and cities. In such a situation, there is also a balance of demand and supply, which is considered very good for the economy. Jefferies has also understood the concern of inflation in the next 6 to 12 months. 

Nominal GDP growth will now remain at all levels despite inflation. Due to this, there will be a significant increase in the profits and revenue of the companies of FMCG stocks. If Jefferies is also bullish on the shares of the defense industry, automation, Hotels, and FMCG, then you should also keep an eye on the shares of these companies. Don't know when the opportunity comes and you too can hit the spot. Now also know a little bit about Jefferies.

Jefferies may be positive about FII inflow, but he believes that people i.e. investors should understand the difference between the fundamentals of the market movement economy. Jefferies has also advised us to keep a conscious approach to the market. Jefferies believes that the next 6 to 12 months can be heavy on the market. Now let us also introduce you to the reasons behind it. Why is Jefferies feeling so negative?

It is as if the dollar has become very strong for some time now. Our rupee also broke the level of ₹ 80 against the dollar. Moreover, thousands of crores of investors were sunk by the US Fed's commentary. His commentary revealed that the company's balance sheet would continue to shrink in the times to come. Stock valuations are also looking expensive due to rising interest rates in the global markets.

Jefferies is advising investors to stay away from IT sectors too. He believes that IT stocks are not looking good with the risk-reward ratio. Therefore, people will benefit only by keeping their distance from these stocks. So overall we've put both sides in front of you. 

India becomes FDI king:

When the naker of the country starts ringing in foreign countries as well, it seems that victory has become true in the true sense. The chest of all 135 crore citizens becomes wide by chanting the victory of India. In such a situation, there has been a cheer on all the platforms of India, but in a recent figure, India has made the country the most preferred investment destination for investors around the world.

Yes, you should also know that people all over the world are relying only on India. Reminds of the confidence that most people trusts in their money. Every moment, he keeps thinking of new ways to increase it all the time. So think when money is so important, then even a man would like to invest it only where he has full confidence. So in such a situation, if we tell you that people from all over the world are investing their money in India itself, then you will also be shocked.

You will say that there is talk of recession and recession going on all around, so why are foreign investors investing their money in India, then the simple answer is that India is trusted by people all over the world and to maintain this trust. The government is making all kinds of efforts for this. Look at India's ranking in the Ease of Doing Business index than India's seventh rank in the world. Now let me tell you a little about FDI.

The investment made by a company of one country in another country is called Foreign Direct Investment. India had moved up a place to number seven in the rankings of FDI investment in 2021. The ranking is released by the United Nations Conference on Trade and Development. It was found that India is getting unlimited foreign investment in a recent report. Now, let us know what countries are so kind to India. Then Singapore comes at number one.

Singapore remains in the first place with an investment of $15.9 billion. The one whose number comes after this is the world's superpower i.e. America, American people have invested 10.5 billion dollars in India, not one or two. After this, our neighboring country Maldives comes at number three. The Maldives has invested too in India with 2.4 billion dollars. These are the top three countries that are keeping their full faith in India, but 15 countries in the world are investing the most in India.

In this list, the name of Singapore, America, and Mauritius is at the top. At the same time, an interesting anecdote was seen in it. China, yes China, the same China that always keeps bumping us is missing from this list. This series is not for one or two years, but now it seems that the name of China is missing from the list of countries making foreign investments in India since the year 2017-18. Now if you want to know about the reasons also, then let us tell you that the Indian government takes a very strict attitude towards China.

The government first approves Chinese companies. Then there is discuss the matter of FDI. The 383 FDI proposals were received from Chinese companies, out of which only 80 companies were allowed to invest in India in July this year. Now let's talk about those countries which we know as tax havens. Yes, countries that consume tax evasion money, the name Cayman Islands has also come in this list.

The Cayman Islands has also invested $3.8 billion in India. It is worth noting that in the Cayman Islands, many of the world's superpowers like the UK, Germany, UAE, Japan, and France have been left behind in terms of investment, so it seems that everyone from world guru to tax haven is kind to India. However, it must have been in your mind that money coming from a tax haven country is not a good thing.

Market experts also agree with your dilemma. Experts believe that even though money from tax havens may be purified by coming to India, it can create huge upheaval in investment. Singapore has been kind to India not only this year but for the last five years. Since the year 2017-18, India has remained the country with the highest FDI investment. This small country has invested $12.2 billion in India in 2017-18, $16.2 billion in 2018, $14.7 billion in 2019-20, and $17.4 billion in 2020-21.

We hope you like the article. You have to plan your investment with the advice of your discretion and market experts and make a lot of money. If you have any questions, please comment on our site www.tradeipohub.co.in. Thanks for reading.