Foreign institutional investors (FIIs) continued to sell on Tuesday, November 21, amid weak global signals.
FIIs cumulatively sold ₹10,927 crore and bought over ₹10,471.83 crore, resulting in an outflow of ₹455 crore on Tuesday. Meanwhile, domestic institutional investors (DIIs) have been infusing ₹5,640 crore and unloaded ₹6,361 crore, recording an inflow of ₹721 crore, according to data published on the National Stock Exchange website on November 21.
Meanwhile, on Monday, FII sold off ₹9,421 crore and bought over ₹8,776 crore, resulting in an outflow of ₹645 crores. And DIIs invested ₹ 6,646 crore and unloaded ₹6,369 crore, recording an inflow of ₹77 crores.
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 moderate. However, the outflow in November notably decreased due to lower US bond yields and a drop in crude oil.
Analysts believe that despite facing many challenges, the Indian market is showing remarkable resilience. Foreign investors are increasingly worried that selling their investments now could result in missing out on potential growth in the Indian market. This concern may act as a deterrent, preventing Foreign Institutional Investors (FIIs) from engaging in significant selling activities in the coming days.
“Today, the market exhibited positive momentum, with attention focused on the minutes of the latest Fed meeting. Declining inflation and the recent data on cooling jobs in the United States provide a basis for appropriate commentary from the Fed. The fall in the bond yields and the dollar index suggest increasing speculation about the potential peak in the interest rate cycle. This will attract funds to emerging markets. The gain in the broad market was led by consumers and real estate, thanks to a strong rebound in festive demand, “said Vinod Nair. , Head of Research at Geojit Financial Services.
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Updated: 21 Nov 2023, 20:27 IST
(tagsTo Translate)FII