New Delhi, Jul 20 (IANS): Domestic institutional investors (DII) are not bullish about the market at the current elevated valuations, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

They were sellers in 12 out of the last 13 trading sessions and have cumulatively sold for Rs 16,321 crore and may sell more at higher levels, he added.

Even when the market is scaling new highs and the undercurrent is positive, there are strong views that the current high valuations cannot be sustained for long, he said.

In January and February when the FIIs were selling DIIs were consistent buyers. The 3000 point rally in Nifty from the March lows has given DIIs huge profits and, therefore, profit booking would be a rational response, he said.

Selling and profit booking at high levels are easy decisions while buying at high prices can be risky.

The demerger of Jio Financial Services from RIL and the Q1 results of Infosys, HUL and a host of mid-cap IT companies can cause a lot of price action in the market today, he added.

BSE Sensex is down 50 points in morning trade on Thursday at 67,046 points. Sun Pharma and Reliance are up more than 1 per cent.