FIIs who had been bothered by the Indian market’s rich valuations and were hoping for a correction to build more substantial positions in the market may see those hopes evaporating, leaving them with the unsavory choice of either staying out of a market that may not correct or may continue to do well or entering the market at current levels despite their reservations about the market’s valuations in general, Kotak Equities said.
FII inflows driven by relative stability, not blind optimism: Saion Mukherjee
The market construct looks quite positive. But I do not think we are out of the woods yet. My concern would be how the economy