FPIs sold stocks worth Rs 2,081 cr in last 2 days indicating buying exhaustion

NEW DELHI:

In the last two days, FPIs have sold stocks worth Rs 2,081 crore indicating buying exhaustion, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

FPI flows have slowed down. This is normal response to the rising dollar index which has moved up to 101.4 from the recent low of 99. Even though Nifty is showing signs of resilience, it is unlikely to race to 20,000 level in the next few days, given the rising dollar and declining FPI inflows. Brent crude spiking to $82 will be another drag on the market, he said.

Globally markets will be keenly watching the US Federal Reserve commentary since a 25 bp hike in rate is already known and discounted by the market.

Q1 results due on Tuesday -- Tata Motors, Bajaj Auto -- and expected on Wednesday -- Axis Bank, Cipla, Dr Reddy’s, Bajaj Finance, Tech Mahindra -- will influence stock prices and market sentiments.

Market is likely to consolidate within a band for now and wait for triggers to move, either up or down, he added.

ITC is down for the second day after hotel demerger announcement. The company is down more than 2 per cent while BSE Sensex trades flat at 66,368 points, down 15 points on Tuesday.


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