Stocks plunge as FPIs sold equity massively for Rs 20,480 cr in last 2 days

BSE Sensex is up 437 factors at 71,624 factors on Friday. Sensex has given up a few of its positive factors. Bharti Airtel is up 3 per cent, Axis Bank is up 2 per cent.

An vital development in the market which has implications for retail buyers is the revival of the tug of struggle between FIIs and DIIs, says V.Okay. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

FPIs have sold equity massively for Rs 20,480 crores through the last two day. This is partly in response to the rising bond yields in the US the place the 10-year yield has risen to 4.16 per cent and partly because of the excessive valuation in the Indian inventory market. Since the most important chunk of FII AUM is in banks, they’ve been promoting in banks, primarily HDFC Bank, he mentioned.

In the tug of struggle between FIIs and DIIs in latest years, DIIs at all times received in the medium to long-term despite the fact that FII promoting could cause short-term ache. FII promoting resulting from exterior elements has at all times been alternatives to purchase, he mentioned.

Mid and small cap segments are sturdy regardless of extreme valuations as a result of there’s sustained shopping for and no promoting strain from FIIs. This anomaly in the market will probably be corrected in due course, he added.

(With inputs from IANS)