IANS | 03 Dec, 2023
Since overall market valuations have reached high levels, FPIs may
turn sellers at higher market levels, says V.K. Vijayakumar, Chief
Investment Strategist at Geojit Financial Services.
FPIs have
reversed their selling strategy in India. Decline in US bond yields and
the resilience of the Indian market have forced the FPIs to halt their
selling, he said.
During the last six days, FPIs were consistent
buyers in India. In November, as per NSDL data, FPI inflows have turned
positive with a net buy figure of Rs 9,000 crore even though they sold
in the cash market for Rs 368 crore. The total buy figure for 2023, so
far, now stands at Rs 1,04,972 crore, he added.
Going forward, FPI
response will be crucially determined by the market trend, which, in
turn, will be influenced by the state election results. If the state
election results turn out to be favourable for the ruling dispensation,
the market will stage a rally. FPIs are unlikely to miss that rally by
big selling, he added.
They might buy into financials where the valuations are fair.
