After Sensex and Nifty surged nearly 49% since the last week of March till the beginning of August, helped by strong foreign fund inflows and hopes of revival, analysts say equity valuations are now expensive. With this, inflows from Domestic Institutional Investors (DII) and Foreign Portfolio Investors (FPI) have softened, which is further resulting in a consolidation phase for equity markets currently, said brokerage and research firm ICICI Direct. After having pumped in over $1.2 billion since May, FPIs inflows were at $6.1 billion into equity. In September FPIs recorded $0.8 billion in outflows.
