The divergence in institutional activity is becoming stark this month. FIIs have turned sustained sellers and DIIs have turned sustained buyers in all trading days of this month, so far. From the data showing sharper declines in the broader market, it appears that HNIs and retail investors have booked some profits and are in a wait and watch mode, perhaps responding to the noise relating to uncertainty regarding the election results. If the election results turn out to be favourable from the market perspective, aggressive buying by DIIs, retail and HNIs can push the market sharply up. So, investors can wait for clarity to emerge on the political front. Meanwhile long-term investors can slowly accumulate high quality largecaps, particularly those in banking and automobiles that have delivered good Q4 results.
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