IANS | 17 Sep, 2023
FPIs continue to be net sellers in September. As per NSDL data, in
September through 15th, FPIs sold equity for Rs 4,768 crores. This
figure includes bulk deals and investment through the primary market. In
the cash market FII selling was Rs 9,579 crores, says V.K. Vijayakumar,
Chief Investment Strategist at Geojit Financial Services.
Since
the market is at record highs and valuations are high FIIs are likely
to press sales in the coming days. With high bond yields in the US (the
10-year is at 4.28 per cent) and the dollar index above 105, FIIs are
likely to sell more, he added.
Even
though the FIIs have been sellers in the cash market it didn’t impact
the market at all since it was neutralised by DII buying of Rs 8,309
crore through September 15.
Hyper activity by retail investors is also contributing to the bullishness in the market.
The
ongoing market rally has taken the Nifty to rich valuations. At the
current level, Nifty is trading at above 20 times estimated FY earnings.
The valuations in the mid-and small-cap space are becoming excessive.
Investors have to be cautious, he added.
