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India Market Rally: Can it Sway FII Selling?
29 Nov
Summary
- FIIs sold Rs 3,765 crore net in Indian equities until November 29.
- India's Q2 GDP grew 8.2%, significantly beating expectations.
- Improved corporate earnings and strong GDP may reverse FII selling.
As of November 29, Foreign Institutional Investors (FIIs) have continued their net selling trend in Indian equity markets, with outflows totaling Rs 3,765 crore. This selling pressure persists despite recent market highs. Analysts suggest that while there's no definitive trend reversal yet, FII flows are sensitive to changing market dynamics and broader economic conditions.
The Indian market has experienced a rally, with both Nifty and Sensex reaching record highs. This surge is attributed to improving corporate earnings visibility, with expectations of 15-16% growth in FY27. Furthermore, India's Q2 GDP growth of 8.2% has bolstered domestic confidence, signaling a robust economy.
Strong performance in manufacturing and gross fixed capital formation, alongside a revival in consumption expenditure, are driving economic momentum. These positive macroeconomic trends offer potential to halt sustained FII selling and encourage them to become net buyers, signaling a possible shift in their investment strategy.
