What is your stock market view for Thursday 28th April? Wil the FPI selling taper or will it continue?

Now it does look like the bounce on Tuesday in the markets was more an exception than the rule. On Wednesday, the markets were back to its falling ways as global cues rubbed off on Indian markets. Among the big losers was Bajaj Finance which reacted to tepid results and a sharp rise in the costs. However, market buying was a lot more selective.

Let me now turn to the market structure. On Wednesday, the breadth of Nifty was strongly negative at 10:39 while the volatility index or VIX rallied higher to 20.61 levels. The sense of concern in the markets is palpable with a slew of big events like the Fed meeting outcome, China slowdown worries and the LIC IPO expected to pan out in the coming week.

FPI net sold Rs.4,065 crore on Wednesday taking their total selling in equities to Rs.28,400 crore in the last 11 trading sessions. Domestic funds bought stocks worth Rs.1,918 crore on Wednesday. In global markets, Dow gained 62 points while NASDAQ was flat ahead of key global cues. Europe was positive with 50 bps gains while SGX Nifty trades 10 bps higher.

The markets are unlikely to see any grand revival in FPI sentiments ahead of a miasma of uncertainty which includes the Fed stance, China COVID mast testing etc. India has the massive LIC IPO to get though and that could hold the key. FPIs may look to hold on till the LIC IPO is over and then take a fresh view on the equity markets in India.