After December 15, the stock market is likely to fall, hence the possibility of selling

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December After the second fortnight i.e. December 15, the Indian stock market may fall. Its major players will be foreign institutional investors (FPIs). Nifty has regained momentum due to resumption of FPI inflows, HDFC Securities said in a report. However, some correction may be seen in the second fortnight of December, as FPIs do not invest towards the end of the year. We tell you that the Nifty 50 recorded its highest year-to-date return in November, led by the US Fed’s dosh remarks, falling bond yields and foreign institutional investors ( due to withdrawal of FIIs).

For the first time since September 18, Nifty crossed 20 thousand.

On November 29, the Nifty touched the 20,000 level for the first time since September 18. The positive sentiment was also driven by unusual comments from the US Federal Reserve, which left rates unchanged for the second time in November, the report said. FIIs invested $1.1 billion in Indian equities during November followed by $1.2 billion in the first day of December alone. Vinay Paharia, CIO, PGIM India Mutual Fund said that DII also saw heavy investment with inflows of $1.7 billion during the month. Due to which the market reached a record high.

Foreign investors invested heavily.

Indian equity markets are optimistic due to long-term economic growth, the report said. However, after the rally in the markets in recent months, we are cautious about the near-term recovery potential of equity markets. After being net sellers for two months, FIIs became buyers to the tune of $2.3 billion in November. DII recorded an investment of $1.7 billion in November after investing $3.4 billion in October. According to Motilal Oswal Financial Services, MII and DII inflows stood at $14.4 and $20.8 billion respectively in CY23YTD. This caused the market to rise but is now likely to decline.

Growth is expected to continue in the long run.

Pradeep Gupta, co-founder and vice-chairman of Anand Rathi Group, said the Indian market may see a slowdown in the short term due to domestic and international geopolitical factors, but is expected to remain buoyant in the long term. We tell you that the Indian stock markets are witnessing a bullish trend in recent times and the indices are touching new highs. “Despite concerns on the valuation front, especially for mid- and small-cap companies, we believe there is little upside in the Indian equity market,” he said. Keeping the above in mind, we expect Indian equities to continue their upward journey in the near term.

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