Matt Orton, Chief Market Strategist at Raymond James, warned that foreign institutional investors are pulling about $1 bn from Indian equities daily, a trend that could dent the broader market if not countered by selective buying.
Orton noted that the rupee’s depreciation, coupled with higher long‑term yields, is tightening the funding environment for Indian companies. He pointed to Mahindra & Mahindra, Eicher Motors, Nykaa, and Adani Ports as stocks that may still offer upside despite the macro‑headwinds, citing their strong balance sheets and growth prospects as key differentiators.
On the global side, Orton said the Nasdaq remains buoyant thanks to capital spending from hyperscalers, which shields the tech sector from rate sensitivity for the near term. He added that the technology rally’s resilience is uneven, with the average US stock feeling the drag from rising yields, oil prices, and geopolitical uncertainty.
The strategist emphasized a cautious deployment strategy: “Investors should deploy money gradually,” he said, warning that premature exposure could backfire if the yield curve steepens or if the rupee continues to weaken.
Looking forward, Orton expects the yield environment to stay volatile for the next few quarters. He advised market watchers to keep an eye on the Fed’s stance and the RBI’s policy signals, as these will dictate the pace of capital outflows and the sustainability of the current equity rally.