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FIIs flows helped in outperformance among large-cap names

ICICIdirect Research 02 May 2025 DISCLAIMER

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.

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