Mumbai, Oct 19 – Foreign institutional investors (FIIs) are cutting back on selling in India and, in some days, have become buyers, analysts said on Sunday. The shift comes as India’s stock valuations catch up with other major markets.
FIIs trim selling
By Oct 17, FII net selling fell to just ₹4,114 crore – a sharp drop from earlier levels. “India’s underperformance over the last year has opened up better prospects,” said Dr. VK Vijayakumar, chief investment strategist at Geojit Investments. He added that fiscal and monetary reforms should boost earnings, making Indian stocks more appealing.
Sector strength fuels optimism
High‑frequency data show robust sales of automobiles and consumer durables during the festive season, underscoring domestic demand. With valuation gaps narrowing and earnings expected to rise in FY27, FIIs are likely to slow down their sell‑off.
Primary‑market buying stays steady
Across the past two years, FIIs have continued to invest heavily in India’s primary market. “IPOs at lower valuations, coupled with preferential allotments to institutions, make primary‑market purchases highly profitable,” said analysts. This trend is expected to persist.
Market outlook
The market opens the new week with a positive outlook. Cooling inflation, solid domestic macro fundamentals, and strong earnings momentum lay a solid foundation for the medium term, according to Ajit Mishra‑SVP of Religare Broking.
Upcoming events
The truncated trading week will feature several key triggers for investors. On Oct 21, the one‑hour Diwali “muhurat” trading session – the start of Samvat 2082 – will be watched closely for sentiment cues. Both retail and institutional participation are expected to be high, adding festive cheer to the market.
— press release
Source: ianslive
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
