New Delhi, May 27 -- It appears that foreign portfolio investors (FPIs), who were aggressively buying Indian equities in April and early May in the cash segment, are now turning cautious and potentially selling at higher levels.

FPIs' buying of Indian equities stood at a meagre Rs.135.98 crore on May 26, even as the Nifty 50 closed with a healthy gain of 0.60 per cent. They are still net buyers of Indian equities worth nearly Rs.12,328 crore in the cash segment this month. However, the trend over the last several sessions indicates that the momentum is losing steam.

The Indian stock market's stretched valuation and mixed Q4 results could be the key factors behind FPI selling at higher levels. However, the dollar's weakness seems to have...