Foreign Institutional Investors Expected to Become Steady Buyers in Indian Markets Soon
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Mumbai, Nov 30 (NationPress) Following a significant wave of selling, it appears that foreign institutional investors (FIIs) are set to emerge as consistent buyers when the market experiences further corrections and valuations become appealing, according to market analysts on Saturday.
A notable aspect of recent FII movements is their unpredictable behavior.
For example, from November 23-25, FIIs were in a buying mood. However, in the subsequent two days, they reversed course, offloading equities worth Rs 16,139 crore in the Indian market.
"FII selling in November has been less intense than in October. The total FII selling through stock exchanges in October was Rs 113,858 crore, while in November, it has decreased to Rs 39,315 crore," an analyst remarked.
This decline can be partially linked to the lower valuations brought about by the market correction.
Earlier this week, FIIs made a notable resurgence, injecting Rs 11,100 crore into Indian equities over three days.
This could indicate a resurgence of confidence in India's growth narrative amidst global challenges, offering hope for market stability soon, noted Vikram Kasat, Head-Advisory, PL Capital-Prabhudas Lilladher.
The trend of FII purchasing in the primary market persists. In November, FIIs acquired stocks worth Rs 17,704 crore through the primary market.
Experts mention that as of November 29, the cumulative FII selling for the year totals Rs 118,620 crore.
On Friday, the Indian stock market ended positively, with both the benchmark indices Sensex and Nifty experiencing a strong surge.
Sensex concluded at 79,802.79, marking an increase of 759.05 points or 0.96 percent. Nifty finished at 24,131.10, gaining 216.95 points or 0.91 percent. The local stock market improved due to enhanced investor sentiment and stock-specific movements.
Experts noted, "a large-cap-driven, broad-based rally unfolded in the domestic market. Discretionary sectors thrived, benefiting from the festive season."
Technically, the market is currently in a consolidation phase, with minimal alterations in chart structure.
"Traders are encouraged to refrain from aggressive positions and be discerning. Monitoring global factors is also vital, as they could affect market trends ahead of the weekly expiry," advised Rajesh Bhosale, an equity technical analyst at Angel One.
