The Indian stock market is expected to open positively despite the ongoing selling by foreign institutional investors (FIIs). The Nifty is set to open around 60 points higher at 24,150. Market experts are cautious about the volatility in the market and are closely watching the upcoming budget for its impact on market trends.
According to experts at IFA Global, there are still pockets of opportunities in large-cap stocks with attractive valuations, while mid-cap and small-cap stocks are considered overvalued. Sectors like banks and energy are favored, and investors are advised to focus on blue-chip stocks rather than mid and small-caps.
Despite the selling pressure from FIIs, most Asian markets are trading higher, except in Japan. Analysts anticipate that the market will remain volatile with a positive bias, and trading volumes are expected to be low.
Dr V K Vijayakumar from Geojit Financial Services highlighted that while FIIs have been selling in the secondary market due to high valuations, they have been active buyers in the primary market through avenues like Qualified Institutional Placements (QIPs). This trend indicates that FIIs are cautious about valuations and prefer fair valuations in the primary market.
Looking ahead, FIIs are likely to continue selling if the US dollar remains strong and US bond yields offer attractive returns. The experts suggest that investors should monitor the dollar index and bond yields as they are key factors influencing FII flows.
In conclusion, the Indian stock market is expected to open positively amidst ongoing FII selling. Investors are advised to be selective in their stock picks, focus on sectors with attractive valuations, and stay cautious given the market volatility. The upcoming budget and global market trends will likely play a significant role in shaping market sentiment in the coming weeks.
