Crude, not rupee, holds key to FII flows; JM Fin flags $105 threshold
Indian markets left its position unchanged in an institutional flows development.
· Business Standard Mkts
According to its analysis, past FII flows help predict the next month's USD/INR movement, but past movements in the currency do not predict FII flows.
The analysis
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it.
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Market context
- A market-wide development: it reaches beyond any single stock.
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