Large cap stocks impacted by FII selling

Bombay Stock Exchange (BSE) building in Mumbai. (Photo: IANS)

New Delhi, May 5 (IANS) The performance of large cap stocks has been impacted by FIIs remaining net sellers in the market.

Vinod Nair, Head of Research, Geojit Financial Services said the ongoing results season will be a key factor for investors to align their portfolios. The market will also remain vigilant about the BoE policy and GDP data from the Eurozone.

“We expect a degree of consolidation in the market due to expensive valuations and any election-led jitters,” he said.

The FIIs continued to remain net sellers in the market, which has impacted the performance of large cap stocks, he added.

A marginally better-than-anticipated Q4 earnings and a correction in oil prices led to a positive start to the domestic market during the week. However, a mixed trend in the global market after the release of a status quo FED policy with caution about sustaining a high inflation trend led to a broad-based correction in the domestic market, he said.

The positive commentary from the auto companies on recent volume numbers led the sector to outperform. Additionally, stock-specific action was visible in banks and the power sector on account of positive Q4 results and increased power demand, he said.

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services said: “We expect the market to consolidate in a broader range.”

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