The domestic market witnessed a higher opening on March 1, tracking positive cues from Asian peers. Benchmark indices Nifty50 surged 0.75% to 17,431.15 and Sensex gained 421.3 points or 0.71% while writing. Nifty Bank zoomed 0.86%.
In a note provided to Investing.com, Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that there is a tug of war going on between FIIs and DIIs currently. In the last 5 sessions, FIIs sold equity for Rs 10,049 crore, while DIIs matched the buying for Rs 10,200 crore.
“So, even though the institutional net buying is positive, the market has been trending down on negative sentiments and increasing short build-up in the system,” he said.
Unlike the past two years, the activity of retail or HNIs has been subdued. Despite there being no positive triggers to take the market higher, short covering could occur as the market is oversold, stated Vijayakumar.
“The only sensible investment strategy in this highly uncertain time is to slowly accumulate high-quality stocks for the long-term, ignoring short-term volatility. Banks, capital goods and IT stocks can give good returns for the medium to long run,” the market expert added.