Quote on FII flows from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Quote on FII flows from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
"The week ending 6th February was eventful for stock markets. The Union Budget, the India-EU trade deal and the much awaited India-US trade deal happened in this week and these events had major impact on the market. The market reacted negatively to the hike in STT on F&O trades but smartly recovered on news of the US-India trade deal.
There has been a discernible change in FII flows in February, so far. In February, through 6th, FIIs were net equity buyers to the tune of Rs 2645 crores. In the last four trading sessions, FIIs were net buyers in three sessions. An important factor that changed the market sentiment was the appreciation in rupee from a record low of 91.72 to 90.30 to the dollar. Even though rupee further weakened to around 90.70 by the close on February 6th, INR is expected to stabilise and gradually appreciate to below 90 to the dollar by end March 2026. This has the potential to trigger more FII inflows into India. However, a lot will depend on how the AI trade pans out."
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