Mumbai, October 26 (IANS). Foreign investors are continuously buying in the Indian stock market and the primary market is benefiting from this. This information was given by the analyst on Sunday.
Selling by foreign institutional investors (FIIs) has started declining from the beginning of this month, which is still continuing.
According to NSDL data, FIIs were buyers for several days in October, due to which FIIs’ selling on the exchange (till October 25) was only Rs 3,363 crore, which is much smaller than the selling of about Rs 35,000 crore in the previous month.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “The long-term trend of consistent buying by FIIs through the primary market continued in October, with total inflows of Rs 10,692 crore (till October 25). Investing through the primary market has been a steady source of profits for FIIs and hence, this trend is likely to continue.”
On Thursday, FIIs had again become net sellers after being buyers for five consecutive trading sessions. During this period, domestic institutional investors (DIIs) made a net investment of Rs 3,893 crore.
Siddharth Khemka, Research Head (Wealth Management), Motilal Oswal Financial Services Ltd, said, “Inflows from FIIs and encouraging comments from management may help maintain the positive market momentum, although intermittent profit-booking cannot be ruled out. Any progress on the India-US trade agreement front may further boost investor sentiments.”
Vijayakumar said that going forward, there are some important factors that could motivate FIIs to become buyers in India.
First, the valuation gap between India and other markets has narrowed significantly and this has prevented foreign investors from reducing selling and transferring investments to other markets. Second- The earnings of the corporate sector in India are gradually increasing again and may see a sharp improvement in FY 27.
He further said that thirdly, Diwali sales this year have been at an all-time high, which shows the strength of the economy and consumption. Fourth-There is a possibility of a trade deal between India and America. Due to this the market sentiment is improving.
–IANS
abs/