Mumbai: Foreign institutional investors (FIIs) have substantially reduced their selling in the Indian market and have even turned buyers in some days, analysts said on Sunday.

A marginal change in FII activity is discernible in recent days. Till October 17, FII selling has drastically reduced to only Rs 4,114 crore.

“The principal reason for this change in FII strategy is the reduced valuation differential between India and other markets. India’s underperformance during the last one year has opened up prospects for better performance, going forward,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

Also, the prospects of earnings growth in response to fiscal and monetary reforms have improved. High frequency data indicate brisk sales of automobiles and cons

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