FII selling trend unlikely to continue
The FII selling trend witnessed in September and October continued in early November as well, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The FII selling trend witnessed in September and October continued in early November as well, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He also said that in the first three days of November, FIIs sold equity for Rs 3,063 crore through the cash market.
This selling trend is unlikely to continue, going forward, since the main trigger for FII selling, the rising bond yields, has reversed.
After peaking at 5 per cent on October 19 the 10-year US bond yield started to decline; during the last two days the decline has been steep, taking the yield down sharply to 4.66 per cent on November 3, he said.
The main trigger for this reversal in bond yields is the subtle dovish commentary from US Federal Reserve chief Jerome Powell that “despite elevated inflation, inflationary expectations remain well anchored”.
The market has interpreted this statement as the end of the rate hiking cycle and that's why yields have corrected sharply, he added.
FII selling is likely to be subdued, going forward. They may even turn buyers, not to miss the rally in the Indian market.Frontline banking, automobiles, capital goods, and mid-caps in IT and real estate are poisedtodowell, he added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
SBI Guaranteed Return Scheme: Know how much maturity amount you will get on Rs 2 lakh, 2.5 lakh, 3 lakh, 3.5 lakh and Rs 4 lakh investments under Amrit Vrishti FD scheme
SBI Senior Citizen FD Rate: Here's what State Bank of India giving on 1-year, 3-year, 5-year fixed deposits currently
Power of Compounding: How soon will monthly SIP of Rs 6,000, Rs 8,000, and Rs 10,000 reach Rs 5 crore corpus target?
01:37 PM IST