In New Delhi on November 30, LatestNewsX noted that the recent upbeat market atmosphere and the strong GDP figures suggest a shift in how foreign institutional investors (FIIs) should approach the market moving forward, according to financial analysts.
There’s no sign yet that FPI flows are turning around. FIIs bought on some days while selling on others, indicating that their actions are likely to adjust as conditions evolve. By November 29, FIIs had sold equity worth Rs 15,659 crore and purchased equity worth Rs 11,894 crore through the primary market.
“There are indications of changes. On November 27, both Nifty and Sensex set new records after a long wait of 14 months. Improved corporate earnings in Q2 and prospects of further improvements in Q3 and Q4 have buoyed up the sentiments. The consensus market view is that 15 to 16 per cent earnings growth is achievable in FY27,” said Dr. VK Vijayakumar, chief investment strategist at Geojit Investments Ltd.
Quarter‑two GDP surged by 8.2 percent, comfortably surpassing forecasts. That jump, even with the recent U.S. tariffs, points to a solid economy that could sustain around 7.2 percent growth in full‑year 2026.
“The standout performance is the 9.1 percent growth in manufacturing and the 7.3 percent growth in Gross Fixed Capital Formation. The 7.9 percent growth in consumption expenditure indicates revival of consumption, which, in turn, can revive investment demand in the economy,” Vijayakumar added.
At the same time, the stock market kept riding its winning streak for a third consecutive week, breaking new record highs thanks to easing global risk appetite and favorable domestic signals.
Early in the week there were bouts of profit‑taking, but a sharp mid‑week rebound revived the bullish tone, followed by a healthy period of consolidation. By Friday, the Nifty was up 0.52 percent at 26,202.95, and the Sensex climbed 0.56 percent to 85,706.67.
“Broader market sentiment has improved, but participation remains selective. Midcaps exhibit relative strength, while smallcaps remain prone to profit‑taking. Institutional demand continues to guide leadership within sectors,” observed Ajit Mishra, senior vice president, research at Religare Broking Ltd.
—LatestNewsX
na/
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