On Thursday, the BSE Sensex surged past the significant 66,000 mark, marking a 400-point upward movement. Notably, the BSE Sensex continues its upward trajectory, currently trading above the 66,000-point mark. Among the leading gainers, NTPC displays a 2% increase, while TCS also shows a 2% rise in its position.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted a notable trend in the market: the growing influence of Domestic Institutional Investors (DIIs), High Net Worth Individuals (HNIs), and retail investors, contrasted by the diminishing impact of Foreign Portfolio Investors (FPIs).
Over the months of August, September, October, and November to date, FPIs collectively divested stocks amounting to Rs 83,422 crore through the exchanges. In stark contrast, during this period, DIIs alone acquired stocks worth Rs 77,995 crore. This robust buying by DIIs and individual investors effectively offset the FPI selling, stabilizing the Nifty at around 19,675 levels—mirroring early August figures.
The market's resilience and robust upward movements, particularly evident on favorable days like Wednesday, have prompted a reconsideration of strategy among FPIs. This change is reflected in their purchase of Rs 550 crore worth of stocks on Wednesday, following a consistent selling trend in November's preceding days.
The shift of Foreign Institutional Investors towards buying stocks bodes well for banking stocks, especially large-caps, perceived as attractively valued in the current scenario. Additionally, the automobile sector stands on a solid foundation, reflecting strength and potential, according to Vijayakumar's analysis.
(With Agency Inputs)