Nevertheless, in accordance with V Okay Vijayakumar, Chief Funding Strategist at Geojit Monetary Providers, adjustments in broader market dynamics might affect a shift in FPI technique going ahead.
“There isn’t a proof of a pattern reversal in FPI flows,” he famous. “FIIs have been consumers in some days and sellers in another days just lately. This is a sign that FII flows could change when the circumstances change.”
The assertion comes in opposition to the backdrop of a renewed market rally and strengthening home macroeconomic indicators. On November 27, each the Nifty and Sensex hit new document highs after a 14-month wait, a transfer that analysts have attributed to enhancing earnings visibility and sentiment.
“Improved company earnings in Q2 and prospects of additional enhancements in Q3 and This autumn have buoyed up the emotions,” Vijayakumar mentioned. He added that “the consensus market view is that 15 to 16% earnings development is achievable in FY27.”
Q2 GDP knowledge launched through the week offered additional gas to home market confidence. India’s GDP development for the second quarter stood at 8.2%, considerably exceeding estimates of round 7.2% for FY26. “This good decide up in development regardless of the Trump tariffs signifies a sturdy financial system,” the strategist mentioned.He highlighted the manufacturing sector’s 9.1% development and a 7.3% rise in Gross Fastened Capital Formation as key contributors to the financial momentum. A 7.9% development in consumption expenditure additionally “signifies revival of consumption, which, in flip, can revive funding demand within the financial system.”Additionally learn: Globus Spirits, VRL Logistics amongst InCred Equities prime 10 small, midcap picks with upside potential as much as 74%
Reflecting on these developments, Vijayakumar commented that “on the again of those macro tendencies, the market can transfer up additional.” He added that “the macro numbers are a shot within the arm for bulls. This has the potential to halt sustained FII promoting and pressure them to show consumers in India.”
In abstract, whereas FIIs proceed to exhibit promoting stress within the secondary markets, rising indicators of energy in company efficiency, GDP development, and enhancing market sentiment could possibly be setting the stage for a potential change of their stance. “The optimistic new market temper and the spectacular GDP numbers warrant a change in FII technique,” he mentioned.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)