Quote on FPI by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

20-10-2024 10:44 AM | Source: Geojit Financial Services

Quote on FPI by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

News By Tags | #Sensex #ExpertViews #MarketOutlook #Nifty #BankNifty #GeojitFinancialServicesLtd #FPI #DrVKVijayakumar

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Below the Quote on Morning Market by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

"This month, through 18th October, FPIs have sold equity for Rs 77701 crores. Selling through the exchanges has been higher at Rs 83082 crores (NSDL). This massive selling caused a correction of about 5% in Nifty, but didn’t have a serious impact on the market since almost the entire FPI selling has been absorbed by DIIs, who are receiving sustained fund inflows. This trend of FII selling and DII buying is likely to sustain in the near-term. The rationale behind FPI selling is the elevated valuations in India and the cheap valuations of Chinese stocks, which the FPIs have been buying aggressively since mid September. This “sell India, Buy China” is most likely to be a short-term tactical trade; but it can run for some more time, given India’s elevated valuations.

Since financials constitute the lion’s share of FPI holding, large-cap financials are under pressure. This is a buying opportunity for mid to long-term investors since this segment, particularly leading banking names, are fairly valued."

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Quote on FPI by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

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