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Overseas investors have turned the most bearish on Indian stock index futures in seven months just as the earnings seasons is about to start.
Foreign funds added nearly 19,000 short positions on index futures managed by India’s National Stock Exchange on Wednesday, boosting their net shorts to 238,000 contracts, the most since June. Tata Consultancy Services Ltd. kicks off the earnings season later Thursday when it announce its results for the three months through Dec. 31.
Bearishness among overseas funds is building as Indian equities drop from their late September highs amid concerns about slow earnings growth, high valuations and weak consumption demand. Not everyone is negative though: Citigroup and Morgan Stanley predict double-digit returns this year for India’s key stock indexes.
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