Market upmove surprising; FIIs taking bullish position in F&O market: Mihir Vora

Max Life Insurance’s Mihir Vohra on Wednesday said that he was pleasantly surprised to see the recent upmove in the market.

In an interview to CNBC-TV18, he said, “It is a bit of a pleasant surprise, the resilience of the market. My guess is that the market is kind of trying to learn from last year and while of course this time around the case count for COVID is much higher and the situation is quite bad, but we also have hope of vaccine rollout in a finite timeframe in the immediate future. So, probably the market is looking beyond the next 3-4 months, which will be tough for sure, and learning from the past that there is little to be gained from selling in panic given the tailwinds that we continue to have on the global front.”

According to Vohra, hope, global conditions, and good results from the financial space has buoyed the market sentiment.

“There is a deluge of global liquidity that is continuing and we do see global cyclicals like materials, commodities, etc. doing well. We also had a few good results especially in the financial sector which has a good weight in the Nifty and other benchmark indices. So, a combination of hope, continuing easy global conditions, and the few good financial sector results is kind of keeping the markets buoyant,” he said.

He also said that the FIIs are selling in the cash market but taking bullish positions in the F&O market.

“The participation is more on the HNI and retail side. Probably not so much on the institutional side because if you look at the daily FII plus DII numbers, they are kind of matching each other on the plus and minus side. So, there does seem to be a little bit of action happening both by HNIs as well as FIIs in the futures and options (F&O) segment,” he said.

He also continues to remain bullish on financial stocks especially the private sector stocks.