FIIs Are Back!

The trend, at least in the near term, seems to have reversed for the markets. While the headwinds remain, the cooling of the commodity prices, especially the crude oil prices are boosting the chances of a sustainable rally in the equity markets. FIIs have long been considered as one of the most important market participants in India and they have started buying into the equity markets in India after an aggressive consistent selling in 2022. Yogesh Supekar discusses the market trends with reference to the FII turning net buyers
 

The year 2022 has been a volatile year so far. After a more than 21 per cent rally in the BSE Sensex in CY 2021 it was expected that some sort of consolidation may happen in the market. However, the real trigger happened in the form of a geopolitical situation that we are still dealing with in the form of the Ukraine – Russia war. The war led to unprecedented disruption in the supply chain globally, similar to the situation faced by the global economy during the peak of the pandemic. This supply chain disruption led to volatile spikes in the commodity prices due to which the inflation figures soared.