Foreign Investor (FPI) Once again there is a big selloff in the Indian market. The proof of this comes from the fact that in the last two days alone, FPIs have sold stocks worth Rs 20,480 crore in the Indian market. This has also caused a big decline in the market. Market experts say that since the largest share of FIIs is in banks, they are selling in banks, mainly HDFC Bank. Its effect is visible on all banking stocks including HDFC Bank. If this selling does not stop, further decline in banking stocks may be seen.
Invest with caution in banking stocks
Market experts say that the biggest investment by foreign investors is in banking stocks. Therefore, if they sell, a sharp fall in the banking counter may be seen. Therefore, small investors should invest cautiously in banking stocks. If possible, stay away from this counter.
Sell-off is always a buying opportunity
V.K., chief investment strategist at Geojit Financial Services. Vijayakumar said that selling by foreign investors has a big impact on retail investors. An important trend in the stock market is the resumption of tug of war between FIIs and DIIs. In the last two days, FPIs have sold equity worth Rs 20,480 crore on a large scale. This is partly due to rising bond yields in the US. The 10-year bond yield in America has increased to 4.16 percent. He said, since the largest share of FII AUM is in banks, they are selling in banks, mainly HDFC Bank. In the tug-of-war between FIIs and DIIs in recent years, DIIs always won even though FIIs’ selling may result in short-term losses. He said, FII selling due to external factors has always been a buying opportunity.
Mid and small cap segment still strong
Despite high valuations, mid and small cap segments are strong. There is continuous buying and there is no selling pressure from FIIs. He said that this discrepancy will be corrected in due course of time. On Friday, BSE Sensex is up 498.63 points at 71,685.49. Sensex has lost some of its gains. Bharti Airtel is up 3 percent, Axis Bank is up 2 percent.
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