Stock Market LIVE Updates | Market View by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.



The trend in May of sustained selling by FIIs and sustained buying by DIIs continues. So, in May, FIIs have sold equity in the cash market for Rs 29474 crores and DIIs have bought for Rs 22973 crores. This trend is likely to continue and the spike in India VIX will ensure high volatility. Under these circumstances the best option for investors is to wait and watch for a trend change, which can happen any time. Clarity on election trends is likely to come before June 4th, the counting day, and the market response can be strong.

Buy on dips would be a good strategy now. FII-heavy stocks which have borne the brunt of FII selling are good picks for bottom fishing. Leading banks, capital goods majors, leading autos and top IT companies like TCS are fundamentally strong.

The decline in April CPI inflation to 4.83% and core inflation to 3.2% augur well for the macro economy. The MPC is likely to hold rates for the near-term.