Given the mixed domestic and global backdrop and continued foreign fund outflows, it is essential to manage debt levels and asset sizes wisely, he advises.
The FIIs were net sellers in December, selling domestic equities worth Rs 22,611 crore during the month, taking total outflows to Rs 1,66,286 crore in 2025.
FIIs sold shares worth Rs 11,766 crore in the third quarter after selling shares worth Rs 76,619 crore in the third quarter of CY25. They reversed the buying trends of the April-June period when inflows were Rs 38,673 crore. The year had started sharply on a negative note with foreign investors pulling out a huge Rs 1,16,574 crore in the January-March quarter.
Market expert VK Vijayakumar blames relatively high valuations in India and the AI trade as major factors behind FII’s exodus in the past year. Their continued selling has also contributed to a significant decline in the Indian rupee against the US dollar, said the Chief Investment Strategist at Geojit Investments.
On Nifty’s likely moves, Religare’s Mishra said next week that a decisive break from the prevailing consolidation range would provide clues to the next directional move. He said market participants should focus on quality large-cap and larger mid-cap stocks, especially in sectors with stronger earnings visibility and institutional interest. For him, IT, metals and certain PSU names remain favorite sectors. Exposure to interest rate-sensitive sectors such as real estate and capital goods should remain limited, he added.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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