The stock indices declined over the past two-odd sessions due to weak global markets, besides fresh selling by foreign portfolio investors.
Foreign portfolio investors were net buyers for the past five months before turning sellers in August. Data showed they sold stocks worth Rs 2,250 crore thus far in August.
"...FPIs may continue to sell or at least refrain from buying aggressively," said
"This is the time to nibble at high-quality large-caps, particularly in banking, capital goods, construction and autos."
Almost a fortnight ago, Indian stock indices had touched their fresh highs and in the process, the benchmark Sensex topped the 67,000 mark for the first time.
The then consistent inflow of foreign portfolio funds (net buyers in Indian stock markets for the fifth straight month), firm economic outlook, and a relative moderation in inflation contributed to the latest bull run in Indian stocks.
The decline earlier this week could be partly attributable to profit booking by investors on fears of high stock valuations, something flagged by analysts. Also, Fitch downgrading US credit rating also weighed. (ANI)