Shillong, September 8: V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights that sustained Domestic Institutional Investors (DIIs) investments, coupled with strong retail buying, are driving the market higher despite Foreign Institutional Investors (FIIs) selling.
As per IANS, in September, FIIs have sold a total of Rs 8,608 crore in the cash market, while DIIs have bought Rs 5,715 crore worth of stocks. Despite this net institutional selling, the Nifty has surged by 434 points so far this month. This trend, along with increased activity in mid-and small-cap stocks, indicates active participation by retail investors in the market rally.
Additionally, the “buy on dips” strategy is proving effective for traders, which has the potential to propel the rally closer to the Nifty’s record high of 19,991. Frontline banking and IT stocks, supported by companies like L&T and RIL, have the potential to sustain the rally in the short term. However, Vijayakumar also expresses concern about the potential formation of bubbles in certain segments of small-cap stocks.
As of Friday morning, the BSE Sensex has risen by 109 points, reaching 66,375 points, with NTPC leading the index gains, up by more than 3 percent.