FIIs offload ₹7,703 cr in Indian stocks on F&O expiry day, DIIs are net buyers
Foreign institutional investors (FIIs) extended their selling spree on Thursday, October 26, on F&O expiry day as domestic markets settled lower for the sixth straight session. The domestic institutional investors (DIIs) emerged net buyers and infused ₹6,558 crore in Indian stocks today.
As per the NSE data, FIIs cumulatively bought ₹10,239.05 crore of Indian equities, while they sold ₹17,941.58 crore — resulting in an inflow of ₹7,702.53 crore on Thursday. Meanwhile, DIIs infused ₹13,600.71 crore and offloaded ₹7,042.26 crore, registering an inflow of ₹6,558.45 crore.
FIIs are selling Indian equities amid rising US bond yields and the strength of the dollar index. These combined factors are weighing on market sentiment.
“In the backdrop of weak global cues, investors shunned local equities at will on the monthly F&O expiry day with benchmark Nifty closing below the 19k mark amid sell-off in frontline banking, automobile and IT stocks. Investors are worried about the simmering West Asia conflict, economic uncertainty and rate hike woes, and maintained their bearish stance for the sixth straight session,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Stock Market Today
Nifty 50 today closed with a hefty loss of 265 points, or 1.39 per cent, at 18,857.25 while the Sensex closed at 63,148.15, down 901 points, or 1.41 per cent. Mid and smallcaps also suffered losses but the magnitude of their fall was less. The BSE Midcap index ended 1.06 per cent lower while the Smallcap index declined 0.32 per cent.
In the last six sessions of losses, benchmarks the Nifty 50 and the Sensex are down about 5 per cent each. The overall market capitalisation of the firms listed on the BSE has fallen to nearly ₹306 lakh crore from ₹323.8 lakh crore.
Vinod Nair, Head of Research at Geojit Financial Services said the domestic Q2 results so far have been below par in comparison to the excited earnings forecasted. Similar disappointments are visible in developed economies.
Nair said a downgrade in earnings and valuation is arising due to the risk of further slowdown of the economy due to geopolitical and elevated interest rates. Also, the selling pressure intensified due to expiry-led volatility influencing investors to stay cautious.
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Updated: 26 Oct 2023, 09:22 PM IST
