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FIIs flows helped in outperformance among large-cap names


FIIs have bought more than 35k crores in the second half of April nullifying the selling pressure seen in the first half wherein they sold ~30K crores in the first half of April.
The sudden change in FIIs stance in the later part of April helped Nifty to reclaim highest levels of the calendar year. Also, FIIs buying has propelled index heavyweights while the midcap and small cap indices largely consolidated in the last 2 weeks.
As per the data available for the first half of April, BFSI segment has seen much lower proportion of selling pressure with respect to their weight. BFSI saw just 14% of the net selling despite having nearly 35% weight in Index suggesting reduced outflows from index
heavyweights. Also, in the Oil&Gas space, the recent outperformance of Reliance clearly suggesting fresh inflows in the index heavyweight.
With cool-off in the global trade concerns, continued flows into Indian indices shouldn’t be ruled out and which may continue the outperformance of large cap vis-à-vis midcaps in the short term. Indian markets are also likely to benefit from the MSCI rejigging to take place towards the end of the May.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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