FII selling limited to large-caps, no pressure on broader market
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New Delhi (Uttam Hindu News): The tug of war continues between FII and DII. While FII is continuously selling, DII is buying. This is to say that V.K., Chief Investment Strategist of Geojit Financial Services. Vijayakumar’s.
Since the strategy of buying on dips is working, retail investors are buying the broader market on every dip. He said there is no selling pressure in the broader market as FII selling is limited to large-caps. The best opportunity for long-term investors is in high-quality large-caps as these stocks will perform well when FIIs become buyers, he said.
There are three important trends in the equity markets right now: First, the global market is stable. Second, risk-off is evident in the markets mainly due to US 10-year bond yields rising from a high of 5 per cent to now 4.57 per cent. Third, Brent crude has fallen from around $94 to below $82. At the same time, the market feels that the Israel-Gaza conflict is unlikely to escalate into a broader regional conflict.
He said the market structure is favorable for the rally to continue despite geopolitical uncertainties. On Wednesday, BSE Sensex fell 20 points to 64,922 points. Asian Paints is up 1 percent.
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