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

"In November FPIs invested Rs 36,238 crores in Indian equities (Source: NSDL). They were big buyers in financial services. Buying was witnessed in segments like capital goods, autos and auto components. FPIs were sellers in consumer durables, textiles, power and telecom. Even though FPIs continued to buy in early December too, they turned sellers in recent days. The decline in the dollar index to below 105 was the major factor that triggered inflows. There is a trend of money moving into cheaper markets like China and South Korea where the valuations are compelling now. Even though India will continue to attract foreign capital, the high valuations in India will be a deterrent. Going forward, in the near term, FPIs are likely to make only modest purchases in performing sectors and may continue to sell and book profits in sectors where they are sitting on big profits. More money is likely to move into cheaper markets."

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