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Below the Quote on FPI from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

"FIIs continued their selling spree in November, too. A perplexing feature of the recent  FII activity is their highly erratic nature. For instance, in the three days from 25th through 25th November, FIIs were buyers. But in the next two days FIIs again turned massive sellers having sold equity for Rs 16139 crores. FII selling in November is lower than that of October. In October the total FII selling through stock exchanges was Rs 113858 crores. In November this had come down to Rs 39315 crores. This can be partly attributed to the reduced valuations caused by the correction in the market.

The trend of FII buying through the primary market continues. In November FIIs bought stocks for Rs 17704 crores through the primary market. If we take the period up to November 29th 2024 the total FII selling for the year stands at Rs 118620 crores. During this period FIIs bought equity for Rs 103601 crores through the primary market. The reason for this  dichotomy is the high valuations in the secondary market and the reasonable valuations in the primary market. It appears that FIIs are likely to turn out consistent buyers only when the market corrects further and valuations become attractive."

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