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Quote on FPI and FII from Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"Early trends in FPI activity in July indicate declining selling by FIIs. For the first time in several weeks, FPIs bought equity worth Rs 2150 cr on 6th July. There are signs of selling exhaustion by FPIs.

The major factors driving FPI selling during the last 2 to 3 months have been the steady appreciation of the dollar and rising interest rates in US. If the rupee consolidates at the current level, which in turn depends mainly on the price of crude, FPI selling will come down. But India's high trade deficit at $ 25 billion is an area of concern. If the trade deficit continues to remain high, further depreciation of the rupee above Rs 80 to the dollar is likely in the next 2 months. FPIs are likely to wait and watch for rupee movements before buying big in India"

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