FII, DII action to be crucial in how domestic markets performs as we head to year end, Anil Singhvi says

The Global economy is staring at restrictions amid the scare of the new Coronovirus statement and spending could take a hit as we move closer to the Christmas and the new year, Zee Business Managing Editor Anil Singhvi said. He expects the market action to remain subdued in the US and Europe.

The Managing Editor said that there is likely to be a short term impact of this on the global markets.

As far as the domestic markets are concerned, the action from Foreign Institutional Investors (FIIs) will be crucial from today, Singhvi said. This is because the FIIs start going on a leave after the second week of December. 

The market action will depend upon how Domestic Institutional Investors (DIIs) respond to this and if they are ready to put more money in the markets and are ready to buy at these levels, Singhvi said. 

The three crucial factors

Anil Singhvi added that we need the global market to be stable, and the pressure from FIIs due to holidays can be lowered. According to him, the only thing important to look for from here is that whether or not the domestic investors are going to buy funds aggressively from this level. 

One can easily see the weakness because the FIIs are already selling their shares, but for the increase in buy, the three important factors for Indian markets are good levels, positive sentiment from domestic investors and stable western markets.

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