02-11-2024 11:08 AM | Source: Geojit Financial Services Ltd
Quote on FPI This relentless selling contributed hugely to the about 8% decline in benchmark indices from the peak by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

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

 

"The FPI sell figure of Rs 113858 crores through the exchanges in October is the single highest absolute selling ever in a month by FPIs. This relentless selling contributed hugely to the about 8% decline in benchmark indices from the peak. However, FPIs were buyers in the primary market with an investment of Rs 19842 crores in October. It is important to understand that the primary market issues are mostly at fair valuations whereas the benchmark indices are trading at elevated valuations. This explains the duality in FPI behaviour.


The rally in Chinese stocks appears to have tapered off as reflected in the declining trend in Shanghai and Hang Seng indices in recent days. In view of the elevated valuations in India, FPIs may continue to sell thereby putting a cap on any possible up move in the market. Another important trend in the sectoral moves is that despite the massive FPI selling in financials, this sector is resilient since the valuations are fair and every selling is being absorbed by DIIs and individual investors, particularly HNIs. Global markets will respond to the US presidential elections for a few days, after which fundamentals like US GDP growth, inflation and rate cut by the Fed will influence market moves."

 

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