FII inflows in November great for markets, but will they continue? Anil Singhvi's take on their Rs 65,000 cr buying spree
FII inflows in November, 2020: The last month of the year 2020 has started on a good note with a strong buying activity being shown by the Foreign Institutional Investors (FIIs). Buying worth Rs 65,000 cr was seen in the month of November. But in this year only in March, the markets saw selling by the FIIs worth Rs 65,000 cr. It was at the bottom then
FII inflows in November, 2020: The last month of the year 2020 has started on a good note with a strong buying activity being shown by the Foreign Institutional Investors (FIIs). Buying worth Rs 65,000 cr was seen in the month of November. But in this year only in March, the markets saw selling by the FIIs worth Rs 65,000 cr. It was at the bottom then. Now after the buying by FIIs in November should the existing levels in Nifty be seen as a peak? What happens next? Zee Business Managing Editor Anil Singhvi explains the phenomenon to investors.
The Market Guru said that these could be the early indicators, but it was not so simple to determine the peak level or whether it has been reached. Also, this in itself cannot be taken as an only indicator to determine the peak. He said that there was no doubt that the FIIs adopted the art of selling at the lowest levels and buying at the highest levels.
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Meanwhile, the domestic funds remain cautious before making a move, he said. They buy in a falling market while sell in a rising market.
The Managing Editor also discussed the important Nifty range as being between 12,800 and 13,200. The market should at least make a top once in this 400-point range, Singhvi said. It can also be a case that the markets consolidate in this range.
Nifty has traded in this range for almost two weeks now. There is no haste to breach the 13,200 mark he added.
The change in peak margin rules is something that the traders have to keep in mind while making positions as of today. Singhvi further said that that it was not that the FIIs were selling or buying worth Rs 65,000 cr every month. On Friday, the FIIs bought worth Rs 7,700 cr. One has to ask if the Nifty should settle down by 18 points from the previous close if there is buying worth this amount, Singhvi remarked.
The global markets have been witnessing a buying trend with money pouring into the other emerging markets, too. Everybody has been gaining from this surge including the Indian equity markets, the Managing Editor said.
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It will be interesting to see if the FII flows will continue in the Indian Markets, especially after the rejig in the MSCI index.
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