FIIs offload ₹9,421 crore in Indian equities to continue selling streak, DIIs emerge as net buyers
Foreign Institutional Investors (FIIs), on Monday, continued their selling streak after the market ended on a lower note amid weak global cues.
According to NSE data, published on November 20, FIIs were sold cumulatively ₹9,421 crore and purchased above ₹8,776 crore, resulting in an outflow ₹645 crore on Monday. Meanwhile, Domestic Institutional Investors (DIIs) invested ₹ 6,646 crore and unloaded ₹6,369 crore, registering an inflow of ₹77 crores.
Meanwhile, on Friday, FIIs sold Indian equities cumulatively ₹12,035.41 crore and purchased above ₹11,557. Whereas, DIIs invested ₹ 6,849 crore and sold ₹7,414 crore
FIIs have been divesting Indian equities since October, driven by historically high US bond yields, the strengthening dollar index, and geopolitical uncertainties arising from the conflict between Israel and Hamas. These combined factors put downward pressure on the market outlook.
Despite ongoing concerns about rising interest rates and a global economic slowdown, foreign inflows remain weak. However, outflows have declined significantly in November due to lower US bond yields and a drop in crude oil prices.
Analysts believe that despite facing numerous challenges, the Indian market shows continued resilience. Foreign investors are increasingly concerned that continued selling may cause them to overlook a potential upswing in the Indian market. That concern could act as a barrier, limiting significant selling by Foreign Institutional Investors (FIIs) in the coming days.
“Long-term trends of rising interest rates and a weakening global economy continue to hurt market inflows and movements. While the recent decline in inflation in the US and India and the negative trend in crude oil are expected to help with the global equity outlook and India in. In this context, the ease in selling by FIIs is helping the domestic markets but it continues to consolidate mainly due to India’s premium valuation compared to global peers. higher compared to long-term history, suggesting a cautious approach in the sector in the medium term,” said Vinod Nair, Head of Research at Geojit Financial Services.
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Updated: 20 November 2023, 06:57 PM IST
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