FPIs pump in ₹10,850 cr in equities in 4 days of May; DIIs turn net sellers
In just four trading sessions of May month so far, foreign investors have made strong buying in Indian equities. In the trading week that ended on May 5th, FPIs have pumped in a whopping ₹10,850 crore, while foreign institutional investors (FIIs) have bought ₹5,528 crore. However, this is not the case with domestic institutional investors (DIIs) who have turned into net sellers in domestic equities. Sensex and Nifty 50 ended the week with only a 1% upside as sharp selling in HDFC and HDFC Bank toppled broad-based gains.
As per NSDL data, FPIs have infused ₹10,850 crore in Indian equities so far in May. In April month, the buying was at ₹11,631 crore.
While FIIs have added ₹5,527.26 crore in equities. On the other hand, DIIs have removed ₹2,735.25 crore from the market.
So far, the May month has seen four trading sessions. In the holiday-shortened week, Sensex has gained 443 points or 0.7%, and Nifty 50 surged by over 171 points or 0.96%.
On Friday, Sensex shed 694.96 points or 1.13% to close at 61,054.29, while Nifty 50 plummeted by 186.80 points or 1.02% to finish at 18,069. A broad-based selloff escalated in equities as investors reacted to major Q4 earnings and rising interest rates by major central banks while concerns lingered over the global economic outlook. HDFC and HDFC Bank witnessed a sharp drop after the former’s Q4 numbers and fears of post-merger fund outflow.
HDFC and HDFC Bank recorded heavy losses on Friday with a downside of nearly 6% each. However, overall, the weekly drop is nearly 3% in HDFC Bank and that of HDFC is over 2%.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. said, “FPIs are likely to continue buying in India. The appreciation in rupee and good Q4 results will aid increasing capital flows to India.”
For the upcoming Monday session, Ajit Mishra, VP – of Technical Research, at Religare Broking said, “The decline in the index has faded the bullish tone and indications are now in favor of consolidation. On the index front, Nifty has major support at 17,850 so any dip towards that mark may prompt fresh buying. We feel banking and financials may take a breather after the phenomenal performance so the focus should be on other sectors for long trades.”
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