 sold a significant amount of Rs 5,316 crore over the past two trading sessions){kind=link}
Shillong, July 10: The market is set to consolidate as domestic institutional investors (DIIs) sold a significant amount of Rs 5,316 crore over the past two trading sessions, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Despite the recent surge that propelled benchmark indices to new highs, Vijayakumar predicts a consolidation phase in the market. The latest US non-farm jobs data indicates a cooling labor market, with 2.09 lakh jobs created in June. However, core inflation remains at around 5%, leading to expectations of a 25bp rate hike by the US Federal Reserve on July 26. As a result, bond yields have risen, with the 10-year yield crossing the 4% mark.
As per IANS, Vijayakumar believes that this macroeconomic situation will temper the ongoing market rally globally, impacting the Indian market as well. However, he suggests that at lower levels, foreign institutional investors (FIIs) may resume aggressive buying as India remains a favored destination for them. Overall, he expects the market to enter a consolidation phase.
The financial sector is anticipated to provide support during market dips, given the positive Q1 results and reasonable valuations. Additionally, foreign portfolio investment (FPI) continues to flow into India, with inflows of Rs 21,943 crore (including bulk deals) recorded until July 8. Vijayakumar anticipates that if this trend continues, FPI flows in July will surpass the figures of May and June, which were Rs 43,838 crore and Rs 47,148 crore, respectively.