Mumbai, Nov 9 || The week saw Donald Trump returning to power in the US election amid a second consecutive rate cut by Fed this year, as the Indian stock market continued to experience consolidation due to heightened selling pressure from foreign institutional investors (FIIs).
This broad-based correction is particularly evident in sectors with excessive valuations, according to experts.
However, despite the massive FII selling, the stock market is resilient since the valuations are fair and every selling is being absorbed by domestic institutional investors (DIIs) and individual investors, particularly high-net-worth individuals (HNIs).
DIIs have been a strong buyer absorbing the selling and mitigating the fall. They infused more than Rs 1 lakh crore in Indian equities in October, keeping the stock market healthy compared to its global peers.
On the other hand, the recent rebound in India's domestic manufacturing activity is a positive sign.
“This year, government spending is expected to be back ended due to general elections this year, so there is a leading expectation of improved corporate earnings in H2 FY25,” said market watchers.