The FPI selling which began in September continues in October, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to NSDL data, FPIs sold equity for Rs 13,652 crore through the stock exchanges through October 13.
But they invested Rs 3,868 crore through the primary market and others during the same period taking the net sell figure to Rs 9,784 crore, he said.
The sustained rise in US bond yields was the principal factor driving the FPI selling.
FPIs continued to sell in financials, power and IT and continued to buy in capital goods and automobiles, he said.
The Indian market continues to exhibit resilience even in the midst of many challenges and, therefore, there is a growing concern among FPIs that if they continue to sell, they will miss out on the potential rally in the Indian market. This might restrain the FPIs from selling heavily in the coming days, he said.
However, if the Israel-Hamas conflicts widens and crude shoots up, they might continue to sell. The level of uncertainty is high, he added.
ALSO READ | Festive Cheer: We're 2-4 weeks away from markets touching all-time high
