Since the market is at record highs and valuations are high FIIs are likely to press sales in the coming days. With high bond yields in the US (the 10-year is at 4.28 per cent) and the dollar index above 105, FIIs are likely to sell more, he added.
Even though the FIIs have been sellers in the cash market it didn’t impact the market at all since it was neutralised by DII buying of Rs 8,309 crore through September 15.
Hyper activity by retail investors is also contributing to the bullishness in the market.
The ongoing market rally has taken the Nifty to rich valuations. At the current level, Nifty is trading at above 20 times estimated FY earnings. The valuations in the mid-and small-cap space are becoming excessive. Investors have to be cautious, he added.
–Ajit Weekly News
san/ksk
News Credits – I A N S
