An important trend in the market which has implications for retail investors is the revival of the tug of war between FIIs and DIIs, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the tug of war between FIIs and DIIs in recent years, DIIs always won in the medium to long-term even though FII selling can cause short-term pain. FII selling due to external factors has always been opportunities to buy, he said.
Mid and small cap segments are strong despite excessive valuations because there is sustained buying and no selling pressure from FIIs. This anomaly will be corrected in due course, he added.
BSE