After months of buying, foreign portfolio investors are turning a blind eye to Indian equities in the month of January amid concerns over high valuations and uncertainty around global interest rates trajectory.
The steep selloff by foreign investors ensured that benchmark indices recorded their worst week in over two months. Nifty bank too has seen its biggest weekly fall in a year.
Despite these challenges, the midcap and smallcap segments demonstrated resilience, outperforming largely due to robust domestic liquidity. Notably, PSU stocks, especially in the railway sector, sustained a bullish trend.
Going forward, the market will react to quarterly earnings as a substantial number of heavyweights are related to release their third-quarter numbers.
Anticipations surrounding the upcoming budget may also drive stock- and sector-specific movements. Globally, attention will be directed towards Japan's monetary policy and US economic data, with a continued close watch on geopolitical developments," said Santosh Meena, Head of Research, Swastika Investmart. Read more:
FPIs unleash turbulence with Rs 21,000 cr weekly selloff in sudden shift
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