New Delhi, July 20 (SocialNews.XYZ) Domestic institutional investors (DII) are not bullish about the market at the current elevated valuations, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
They were sellers in 12 out of the last 13 trading sessions and have cumulatively sold for Rs 16,321 crore and may sell more at higher levels, he added.
Even when the market is scaling new highs and the undercurrent is positive, there are strong views that the current high valuations cannot be sustained for long, he said.
In January and February when the FIIs were selling DIIs were consistent buyers. The 3000 point rally in Nifty from the March lows has given DIIs huge profits and, therefore, profit booking would be a rational response, he said.
Selling and profit booking at high levels are easy decisions while buying at high prices can be risky.
The demerger of Jio Financial Services from RIL and the Q1 results of Infosys, HUL and a host of mid-cap IT companies can cause a lot of price action in the market today, he added.
BSE Sensex is down 50 points in morning trade on Thursday at 67,046 points. Sun Pharma and Reliance are up more than 1 per cent.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz