New Delhi: September has witnessed a clear trend reversal and after sustained buying in the previous three months, the FPIs have turned sustained sellers in the month having sold stocks for Rs 26,689 crore in the cash market, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This sustained selling has been in response to steady dollar appreciation which took the dollar index close to 107 and the steady rise in the US bond yields which took the US 10-year bond yield to around 4.7 per cent. The spike in the Brent crude to $97 also weighed on FPI selling, he added.

However, September 29 witnessed marginal decline in the dollar index, US bond yields and Brent crude. This has emboldened the DIIs to buy aggressively thereby imparting resilience to the market, he said.

In September, total FPI selling of Rs 26,689 crores was countered with total DII buying of Rs 19,310 crores. Even while selling FPIs were buyers in capital goods and selected financials, he added.