New Delhi: The FPI selling trend which started in September continued in October and is showing no signs of reversing in November even though the intensity of selling has come down this month, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Through November 10, FPI selling was Rs 5,805 crore as per NSDL data.
FPIs continue selling in financials despite their impressive Q2 results and bright prospects.
In this time of uncertainty, FPIs are looking for the safety of the risk-free US bond yields where the 10-year is yielding around 4.64 per cent, he said.
Sustained selling by FPIs in financials have made the valuations of banking stocks attractive. This is an opportunity for investors with a time horizon of two years and above.
In the run up to the General elections, a rally in the stock market is likely as happened during the last five General elections. Leading banking stocks have the potential to outperform in the imminent rally, he added.
(IANS)
