The first two weeks of February saw continued selling pressure in financial services, fast-moving consumer goods (FMCG), and capital goods sectors.
FIIs hold over Rs 10 trillion in futures and options on the NSE, signaling bullish sentiment as the Indian market prepares for the earnings season and U.S. elections. Analysts urge caution as bearish phase may loom.
While foreign investors resumed purchases of Indian equities, markets face a risk of them diverting funds to cheaper emerging markets
The increase was attributed to net inflows of Rs 14,671 crore, Prime Database Managing Director Pranav Haldea said.
High foreign institutional investor (FII) holdings in stocks across various sectors in the market raises the risk of a freefall in the Nifty in case these investors decide to redeem their investments.