IGI Logo

Below the Quote on FPI flows from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“FIIs continued their selling spree in  October with total selling of Rs 54636 crores through 16th October. This is higher than the total selling in September. However, they have reduced the selling intensity during the last few days and turned marginal buyers on 16th. This brief change in the FII stance is likely to be more tactical than structural.

The marginal decline in the US 10-year yield from above 5.3% to 5.08% and the strengthening of the rupee against the dollar to below 95 are the significant factors responsible for the temporary change in FII stance.

FIIs continued selling in financials and oil and sectors. But even while selling in these segments, they have been buyers in consumer services like digital platform companies, entertainment, restaurants and healthcare services. The sharp gain of 2.77% in Nifty during the week led to some short covering by the FIIs. This imparted resilience to the banking stocks which had borne the brunt of FII selling.”

Above views are of the author and not of the website kindly read disclaimer