New Delhi, Sep 8 (IANS): Sustained DII investment supported by strong retail buying is driving the market higher in spite of FII selling, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In September, so far, FIIs have sold in the cash market for Rs 8,608 crore and DIIs have bought for Rs 5,715 crore. In spite of this net institutional selling Nifty is up by 434 points for the month so far. This, and the hyper activity in the mid-and small-cap segments, point to the active participation of retail investors in the rally, he said.

Also, the ‘buy on dips’ strategy is working well for traders. This market construct has the potential to take the rally to near the Nifty record high of 19991. Frontline banking and IT stocks assisted by L&T and RIL have the potential to sustain the rally in the near-term. Bubble building up in segments of small-caps is an area of concern, he added.

BSE Sensex is up 109 points at 66,375 points on Friday morning. NTPC is leading index gains, up by more than 3 per cent.