Cheap stocks aren’t enough: The one trigger FIIs need to return to India
JM Financial moved lower in a quarterly results development.
· Economic Times Markets, ET Stocks
FIIs have pulled nearly $64 billion from Indian equities over the past two years, marking the longest and deepest sell-off in two decades, according to JM Financial. Despite cheaper valuations and an improving earnings outlook, foreign investors remain on the sidelines, with a sustained decline in crude oil prices emerging as a key trigger for their return.
The analysis
Against that, the stock is +3.5% on the day at ₹111.51, and has returned -11.2% over three months. It sits 34% below its 52-week high, which means a good deal of bad news was already in the price. The capital markets sector has moved -6.3% over the same period, so JM Financial is running 4.9 points behind its peers.
This is an Input cost / crude event. India imports most of its crude, so input costs pass through to margins downstream and to the rupee. Producers and consumers of the same input move in opposite directions. On the day the stock is +3.5%, so the market took notice.
For JM Financial, the question is how much of this is already reflected in the price and how much re-rates the capital markets peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- In focus: JM Financial (JMFINANCIL), in Capital Markets.
- Over three months: JM Financial -11.2% against Capital Markets -6.3% (4.9 points behind).
- At least 25% below the 52-week high: JM Financial (34%).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| JM FinancialJMFINANCIL · Capital Markets | ₹111.51 | +3.5% | -16.5% | -11.2% | -33.5% | 0.4× | — |
Capital Markets
1M -2.9% · 3M -6.3%
JM Financial
Financial Services
1M -8.8% · 3M -14.9%
Prices as of 2 Nov 2026, 12:45 IST. Sector moves are the average of the stocks we track in each sector.
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