FIIs continue to sell amid weak global cues, DIIs sell over ₹7,414 crore

The Foreign Institutional Investors (FIIs), on Friday, continued with its selling streak after a day halt on November 16 amid weak cues from the Asian markets. 

As per NSE data, published on November 16, FIIs cumulatively sold ₹12,035.41 crore and purchased over ₹11,557, resulting in an inflow of ₹ 477.6 crore on Friday. Meanwhile, DIIs invested ₹ 6,849 crore and offloaded ₹ 7,414 crore, registering an inflow of ₹ 565.48 crore.

On November 16, FIIs snapped their selling streak by purchasing worth ₹13,546 crore amid festive season after the stock market ended on a higher note for the second day straight.

FIIs cumulatively sold 12,589 crore, resulting in an outflow of ₹ 957.25 crore on Thursday. Meanwhile, DIIs invested ₹ 6,690 crore and offloaded ₹ 5,985 crore, registering an outflow of ₹ 705.65 crore, on Thursday.

FII have been divesting Indian equities since October, driven by historically high US bond yields, the strengthening dollar index, and geopolitical uncertainties stemming from the Israel-Hamas conflict. These combined factors have exerted downward pressure on market sentiment.

Despite ongoing concerns about elevated interest rates and a global economic slowdown, foreign inflows have remained subdued. However, the outflow in November has notably eased due to lower US bond yields and a decline in crude oil prices.

There are some important trends which will impact the market in the near-term. One, the big macro driver of this two day rally in the market – peaking and declining US bond yields – is very much in place. This will continue to impart resilience to the market. Two, the sharp decline in Brent crude to $ 77.5 is a positive for India’s macros and favourable for sectors that consume petroleum inputs like aviation, tyres and paints. Three, and this is a negative factor, the RBI action raising the risk weighting on unsecured loans is sentiment negative for financials,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He further added, “ It is important to understand that FIIs turning buyers is an important shift in tune with the declining bond yields in the US. In the near-term, IT, automobiles, telecom and construction-related segments will attract more buying since financials will see the temporary impact of the RBI action.”

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Updated: 17 Nov 2023, 06:09 PM IST