FIIs offload ₹267 cr as markets extend losses for 2nd session; DIIs net buyers
Foreign institutional investors (FIIs) continue their selling streak on D-Street as Indian markets extended losses for the second straight session on August 18, amid volatility on global and domestic headwinds. Domestic benchmark equity indices settled lower for the second straight session on the backdrop of unfavourable global cues and additional foreign fund outflows. The domestic institutional investors (DIIs) were net buyers and invested ₹2,406 crore during Friday’s session.
As per the NSE data, FIIs cumulatively bought ₹12,302.17 crore of Indian equities, while they sold ₹12,569.17 crore — resulting in an outflow of ₹266.98 crore. Meanwhile, DIIs infused ₹6,501 crore and offloaded ₹6,161.82 crore, registering an inflow of ₹339.18 crore.
Global markets largely extended their losses as concerns over higher interest rates and slowing China’s economy weighed on investors. Higher US bond yields and default risk in China are poised to prompt FIIs to adopt a more prudent stance when considering investments in emerging markets, said analysts.
The 30-share BSE Sensex ended at 64,948.66 down 202.36 points or down 0.31 per cent while Nifty also closed at 19,310.15 level, down 55.10 points or 0.28 per cent. Nifty FMCG, media, metals, PSU bank closed in green. Majority of sectors felt the heat wherein IT, realty and pharma were among the top losers. The broader indices too traded in sync and lost nearly half a per cent each.
‘’Benchmark Indices ended in the red today on the back of profit taking seen in IT stocks as well as PSU stocks. The 6 per cent deficiency in the Monsoon was an important factor with several states witnessing deficits across districts. The Evergrande Bankruptcy in China though was brushed away since real estate loans in India are by and large regulated well in India now,” said S Ranganathan, Head of Research at LKP Securities.
In other news, ratings agency Moody’s has affirmed BAA3 rating on India and maintained a ‘stable’ outlook on the Indian economy. The Baa3 rating and stable outlook also take into account a curtailment of civil society and political dissent, compounded by rising domestic political risk, according the ratings agency.
India’s long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating remains at Baa3, while the other short-term local-currency rating stands at P-3, said Moody’s in a statement on August 18.
Where is Nifty headed?
“The index has consistently remained below its 21-day Exponential Moving Average (EMA), a sign that underscores the prevalence of a bearish trend. On the lower end, support is placed at 19,250. A fall below 19,250, may trigger a correction towards 19,000 and lower. On the higher end, resistance was placed at 19,500,” said Rupak De, Senior Technical Analyst at LKP Securities.
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Updated: 18 Aug 2023, 06:33 PM IST
