Global currency markets are witnessing heightened volatility as the US Dollar continues to lose strength against major currencies, but Indian rupee has found relative stability and weakness in dollar could lead to FII inflows, a report said on Tuesday.
Major factors, including auto sales figures, PMI data, Foreign Institutional Investor (FII) activity, and international economic updates, are expected to drive the Indian stock market this week.
Union Finance Minister Nirmala Sitharaman Monday said the foreign institutional investors (FII) are selling Indian equities lately due to the profit booking.
A perplexing feature of the recent FII activity is their highly erratic nature.
However, gold reserves, which form part of the foreign exchange kitty, increased by $1.08 billion to $68.53 billion during the week, according to the central bank.
The overall high valuations of the market is creeping into PSU stocks too
The assets under custody (AUC) for FIIs stood at Rs 68.04 lakh crore as of February 15, of which Rs 62.84 lakh crore were in equities.
Foreign institutional investors have net sold over USD 3.5 billion worth of shares so far in 2024.
This week is likely to be volatile but a rally is likely soon. FIIs have already turned buyers. FII and DII money flows can trigger a large-cap led rally, says V K Vijayakumar,
The concerns triggered by the ongoing Israel-Hamas conflict had resulted in the creation of big short positions in the market, and now these shorts are being covered pushing the markets up, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
