Kedia Backs Open Buybacks: Nifty Stability Post FII Sell-off

Market expert Vijay Kedia has publicly supported Mohandas Pai's suggestion for open-market buybacks as a means to stabilize Indian equities. This comes after a period of significant market decline, with benchmarks falling nearly 10% in a month, largely attributed to relentless selling by Foreign Institutional Investors (FIIs).

This proposal is significant as it addresses a key concern for Indian markets: the impact of FII outflows and the need for domestic mechanisms to absorb selling pressure. Open-market buybacks could provide a structural support, potentially reducing volatility and enhancing investor confidence, especially for the resilient retail segment.

While no immediate policy change is indicated, a move towards open-market buybacks could broadly benefit the Indian equity market by providing a floor during corrections. Companies with strong balance sheets might be more inclined to utilize this, potentially offering support to their stock prices. This could indirectly benefit broader indices like the Nifty 50 and Sensex by reducing overall market downside risk.

Traders should monitor any discussions or proposals from SEBI or the Ministry of Finance regarding changes to buyback regulations. Any concrete steps towards facilitating open-market buybacks could be a significant positive catalyst for the broader market, particularly for fundamentally strong companies. Also, keep an eye on FII flow trends and global geopolitical developments, such as US-Iran talks, which can influence market sentiment.

• •Market expert Vijay Kedia backed Mohandas Pai’s call for open-market buybacks.
• •The purpose is to stabilise equities after a 'bloodbath'.
• •Retail investors 'quietly held market together' amid relentless FII selling.
• •Benchmarks slid nearly 10% in a month.
• •Sentiment improved slightly after Donald Trump signalled progress in U.S.–Iran talks.