Near-term outlook looks bleak on unabated FII selling
Foreign funds may continue selling amid rising dollar and US bond yields; The dollar index rising above 107 and the US 10-year bond yield at 16-yr high of 4.68% are major headwinds for the market
image for illustrative purpose
Mixed Factors
♦ Bulls will be emboldened to buy
♦ 5% crash in Brent crude prices acting as tailwind
♦ Bullish DIIs and retail investors will lend support to the market
New Delhi: The major negative for the near-term will continue to be the sustained FII selling, which touched Rs 26,689 crore in the cash market in September, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. There are mixed cues for the October series, which historically has been a good month for markets.
The dollar index rising above 107 and the US 10-year bond yield at 16-year high of 4.68 per cent are major headwinds for the market since FIIs are likely to continue selling in response to the rising dollar and US bond yields, he said. But, on the positive side, the bulls will be emboldened to buy on the back of the tailwind of the 5 per cent crash in Brent crude prices. Bullish DIIs and retail investors will lend support to the market. In the near-term these negative and positive factors can be expected to swing the market to and fro, he said.
