ETMarkets Smart Talk: Why are FIIs turning net sellers in Indian markets? Aditya Sood decodes

economictimes.indiatimes.com:

“Over the next decade, India will be a buy on dip market — all corrections should be used as buying opportunities to increase allocation to equities as an asset class,” says Aditya Sood, Fund Manager, InCred Asset Management.

In an interview with ETMarkets, Sood said: “FIIs were net sellers of approximately Rs 35,700 crore in April and Rs 33,539 crore, while DIIs were net buyers of over Rs 44,000 crore in April and Rs 26,500 crore in May,” Edited excerpts:

What a twist market saw in the week gone by. We retested crucial support levels. What is causing the panic on D-St?
Aditya Sood: A month ago, it was widely expected that the ruling party coalition NDA would aim for 400-plus seats. However, the turnout in the first three phases has been slightly lower, which might impact a few constituencies.

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Despite this, it is unlikely to significantly alter the widely anticipated outcome of the NDA-led coalition returning to power, although they may fall short of the initial expectations.

This coincides with net selling by FPIs to the tune of Rs 25,000 crores until mid-May, which has been absorbed by domestic institutions and retail.

The ongoing earnings season is driving market volatility, with financial results being reported by companies.

ETMarkets Smart