The majority of the fresh buying on Friday helped Indian stock indices trade slightly higher after experiencing intense selling pressure over the previous two to three sessions.
At the time this report was being written, the Sensex and Nifty were both 0.3-0.4% higher than where they had closed the day before. All Nifty sectoral indexes were in the green in line with the wider indices, with the exception of Nifty oil & gas, Nifty media, and Nifty auto.
The stock indices declined over the past two-odd sessions due to weak global markets, besides fresh selling by foreign portfolio investors.
Foreign portfolio investors were net buyers for the past five months before turning sellers in August. Data showed they sold stocks worth Rs 2,250 crore thus far in August.
“…FPIs may continue to sell or at least refrain from buying aggressively,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“This is the time to nibble at high-quality large-caps, particularly in banking, capital goods, construction and autos.”