FII: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, a notable near-term trend in the market right now is the continuous selling by FIIs of Rs. 10,437 crore during the past eight trading sessions mirrored by the prolonged purchasing by DIIs of Rs. 10,860 crore in the same period.
US Bond Yields and Dollar Index Influence Selling Trend
It’s crucial to note that, unlike DII activity, which is primarily impacted by local factors like GDP growth and corporate profitability, FII activity is affected by external factors like the Dollar Index and US bond yields. The jump in the yield on US 10-year bonds above 4% in the near term has prompted selling by FIIs who may be shifting some capital to US bonds.
Domestic Market Structure Remains Strong
The structure of the domestic market is still robust. Markets will be closely watching Thursday’s US CPI inflation print, he said. Sensex is trading at 65,881 points, down 71 points, on Tuesday morning. The biggest losers, down more than 2%, are Powergrid and M&M. NTPC, JSW Steel, and Sun Pharma are all down more than 1%.
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