The Foreign Institutional Investors (FIIs), on Friday, continued with their selling streak after a day-long halt on November 16 amid weak signals from the Asian markets.
According to NSE data, released on November 16, FIIs sold sharply ₹12,035.41 crore and bought over ₹11,557, resulting in an inflow of ₹ 477.6 crore on Friday. Meanwhile, DIIs invested ₹ 6,849 crore and unloaded ₹ 7,414 crore, recording an inflow of ₹ 565.48 crores.
On November 16, FIIs broke their selling streak by buying stock ₹13,546 crore during festive season after the stock market ended on a higher note for the second straight day.
FIIs cumulatively sold Rs 12,589 crore, resulting in an outflow of ₹ 957.25 crore on Thursday. Meanwhile, DIIs invested ₹ 6,690 crore and unloaded ₹ 5,985 crore, recording an outflow of ₹ 705.65 crore, on Thursday.
FIIs have been shedding Indian stocks 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 exerted downward pressure on market sentiment.
Despite continued concerns about high interest rates and a global economic slowdown, foreign inflows remained weak. However, the outflow in November notably decreased due to lower US bond yields and a drop in crude oil.
There are some important trends that will affect the market in the near future. One, the big macro driver of this two-day rally in the market — peaking and falling U.S. bond yields — is very much in place. This will continue to give resilience to the market. Two, the sharp decline in Brent crude to $77.5 is positive for India’s macros and favorable for sectors that consume petroleum inputs such as aviation, tires and paints. Three, and this is a negative factor, the RBI action raising the risk weighting on unsecured loans is a negative sentiment for financials,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further added, “It is important to understand that FIIs turning buyers is a major shift in line with the declining bond yields in the US. In the near term, IT, auto, telecom and construction-related segments will attract more buying as funds will see the temporary impact of the RBI action.”
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Updated: 17 Nov 2023, 18:09 IST
(tagsTo Translate)FII