New Delhi, Dec 2 : Since overall market valuations have reached high levels, FPIs may turn sellers at higher market levels, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

During the last six days, FPIs were consistent buyers in India. In November, as per NSDL data, FPI inflows have turned positive with a net buy figure of Rs 9,000 crore even though they sold in the cash market for Rs 368 crore.

The total buy figure for 2023, so far, now stands at Rs 1,04,972 crore, he added.  Going forward, FPI response will be crucially determined by the market trend, which, in turn, will be influenced by the state election results. If the state election results turn out to be favourable for the ruling dispensation, the market will stage a rally. FPIs are unlikely to miss that rally by big selling, he added.  They might buy into financials where the valuations are fair.