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
"FIIs followed up with their sell strategy in July with selling of stocks worth Rs 14019 crores in August through 8th. A significant feature of institutional activity is the strong and sustained buying by the DIIs who have bought equity for Rs 36793 crores in August through 8th.
Despite the sustained buying by the DIIs, the market has been drifting down during the last 6 weeks. The market turned weak technically as well as fundamentally. Continuous lower lows in the benchmark index is a strong indicator of technical weakness. Nifty recording continuous lower lows led to accumulation of short positions in the market. This explains the weakness in the market despite strong and sustained buying by the DIIs. Fundamentally there are no triggers for a rally in the market. Q1 earnings indicate a modest earnings growth of only around 10% for FY 26.
Market sentiments have been impacted by President Trump’s decision to impose 50 percent tariff ( including the 25% penal tariff for importing energy from Russia) on India. President Trump’s decision to impose the highest tax of 50% on “friendly” India came as a shock to the market and this has impacted market sentiments negatively. FII investment, going forward, will be decided by the developments on the tariff front."
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