Why FIIs are selling and for how long it will continue? Nikunj Dalmia's analysis | Editor's Take
why fiis are selling and for how long it will continue? nikunj dalmia’s analysis | editor’s take
Why FIIs Are Selling: ET NOW Editor-in-chief Nikunj Dalmia on Thursday said that one of the factors why FIIs are selling is that Hong Kong in the Chinese market seems to be coming back.
“I think… you don’t have a big, impressive number. Now, at least on the FIIs front, for institutional investors, after almost like a year out in 2023, they have not come back and they have not come back at a time when global cues are strong. They have not come back at a time when, in general, turning momentum and the macros are not bad at all,” he said during today’s Editor’s Take.
“So they (FIIs) are selling. Could it be sectoral rotation which is moving into China? Is that coinciding with the big election event? Or that really could be a play where a little bit of skim from the top at the current valuation is more like a global phenomenon, very difficult to attribute. The problem with this kind of FIIs selling is that if it continues for the next couple of days, then markets will find it difficult to digest,” he said.
“Rs 5,000 or Rs 6,000 crore selling on a daily basis is something no market, at least a market like India will struggle,” Nikunj Dalmia said.
“If the supply is so large and even if it is getting digested by domestic institutional investors, you may not see the market going anywhere at all. And for a trader or foreign investor, when you know that this kind of an selling is coming, you do not want to commit more capital,” the Editor-in-chief said.
“We are not in that phase where you would say that markets are cheap, you want to buy more, you would like to go contra. You are not in that phase of the market where you can be completely ignorant to what the election risk is. So in this market, when they sell… Rs 5,000 crore or Rs 6,000 crore on daily basis is a problem,” he continues.
“Either that has to neutralize or markets have to become attractive or the investors have to go behind us,” he noted.
VIDEO