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 Below the Quote on October FII Flows from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“October marked a reversal of the sustained selling by FIIs seen in the previous three months.For October FIIs bought equity for Rs 3902 crores through the exchanges.

However, this figure includes some bulk deals too. The trend of sustained buying/ investing through the primary continued in October too with a buy figure of Rs 10707 crores.

The red hot IPO market and the high premium investors are willing to pay for new issues are encouraging FIIs to invest through the primary market.

For 2025, so far, total FII investment through the primary market stands at Rs 54292 crores. This is in sharp contrast to the total sell figure through exchanges till the end of October at Rs 194201 crores. ( Source: NSDL)

The aggregate buy figure through the exchanges in October doesn’t mean that the FIIs will continue to be in buy mode, going forward. The relatively higher valuations in India may prompt FIIs to sell again. Whether FIIs will buy or sell will depend on the trajectory of India’s corporate sector’s earnings growth. 

There are clear signs of earnings recovery now. If the brisk demand conditions in the market sustains, earnings will improve, which, in turn, will make valuations fair. In such a scenario FIIs will turn buyers.”

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