IGI Logo

Below is quote on FPI By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"As per NSDL data, in October FPIs sold equity worth Rs 5992 crores till 21 st. But during the last few days FPIs had slowed down their sales substantially. A major trend in the market is that sustained buying by DIIs and retail investors has been overwhelming FPI selling. If FPIs want to buy the stocks that they sold they will have to pay a much higher price. This realisation is slowing down their selling even in the negative macro construct where US bond yields are rising and rupee is depreciating. FPIs have been sellers in financials, FMCG and IT in October. But the Q2 Results of these segments have been good with financials, particularly leading banks, beating expectations. FPIs are unlikely to sell heavily in the near term. But they will turn to sustained buyers only when the dollar starts declining. This in turn, will depend on the trajectory of US inflation and the Fed’s monetary stance."

Above views are of the author and not of the website kindly read disclaimer