FIIs infuse over ₹870 cr in cash markets, DIIs net buyers in Feb; here’s why
Even though FIIs were buyers for three out of five sessions this week, yet the net investment value stands at ₹23.51 crore. while DIIs were buyers for three out of five sessions, with a total investment of ₹8,268 crore, according to stock exchange data. On a monthly basis, FIIs have infused over ₹870 crore in cash markets despite high US bond yields.
As per the NSE data, FIIs cumulatively bought ₹15,712.62 crore of Indian equities, while they sold ₹15,583.68 crore — resulting in an inflow of ₹128.94 crore on Friday, March 1. Meanwhile, DIIs invested ₹11,987.98 crore and offloaded ₹8,173.45 crore, registering an inflow of ₹3,814.53 crore.
Will FII inflow sustain in Indian markets?
Market expects noted that FIIs have sharply reduced their selling this month and have turned buyers to the tune of ₹872 crore in the cash market, so far (till February 27) despite the high US bond yields.
‘’This indicates that FIIs are unlikely to press big selling pulling the market sharply down. Because of this favourable market construct, dips are getting bought, aided by sustained flows into the market,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In US Treasuries, the yield on benchmark US 10-year notes fell 0.6 basis points to 4.268 per cent, from 4.274 per cent late on Wednesday while the 30-year bond yield fell 2.2 basis points to 4.3884 per cent, according to news agency Reuters. The two-year note yield, which typically moves in step with interest rate expectations, was roughly flat at 4.6477 per cent compared with 4.648 per cent late Wednesday.
Stock Market Today
Domestic equity benchmark indices, the Sensex and Nifty 50, finished Friday’s trading session higher for the third consecutive session due to positive global cues, strong GDP figures, and a rally in banking, metals and oil marketing companies (OMC) stocks. For the first time ever, the Nifty 50 crossed 22,300 intraday, while the Nifty Bank touched 47,000 intraday. Sensex hit record high and crossed over 73,700-mark.
The 30-share BSE Sensex ended higher by 1,245.05 points or 1.72 per cent at 73,745.35 level while the Nifty 50 closed at 22,338.75 level, up 355.95 points or 1.62 per cent. On the broader market front, the Nifty Small Cap 100 gained 0.52 per cent and the Nifty Midcap 100 was up by 0.94 per cent.
India’s economy grew by better-than-expected 8.4 per cent in the final three months of 2023 — the fastest pace in one-and-a-half years. The growth rate in October-December was higher than 7.6 per cent in the previous three years, and it helped raise the growth estimate for the current fiscal to 7.6 per cent, according to the data released by the National Statistical Office (NSO) on Thursday.
“The strong resilience in India’s Q3 GDP growth numbers propelled Sensex & Nifty to fresh record highs amid a rally in index heavyweights such as Reliance Industries, Tata Steel and banking stocks. Despite the sharp rally, volatility cannot be ruled out due to ongoing concerns like delay in rate cuts, conflicts in the Middle East and expensive valuations of local stocks,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Technical View:
The upsurge shows that investors are willing to place bullish bets on Indian stocks amid continuity in economic policies and robust investment climate, according to analysts.
‘’From a technical perspective, if today’s bullish trading action is any indication, then Nifty’s next goal post is seen at its psychological 22500 mark followed by aggressive targets placed at 23000 mark, while the make-or-break support is at 21861 mark,” added Mehta Equities’ Tapse.
Ajit Mishra, SVP – Technical Research, Religare Broking Ltd is eyeing 22,800 in Nifty now and said that participants should continue with a “buy on dips” approach until it breaks 21,900.
‘’We feel the participation of the banking pack would continue to play a critical role in maintaining the prevailing momentum while others may play a supportive part on a rotational basis. Traders should maintain stock-specific approach and prefer index majors and large midcap counters for long trades,” said Mishra.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 01 Mar 2024, 09:59 PM IST
