Asia Press Agency

Tag: DIIs

  • FIIs Extend Selling Streak on F&O Expiry Day

    FIIs Extend Selling Streak on F&O Expiry Day

    On Thursday, October 26, Foreign Institutional Investors (FIIs) extended their selling spree in the Indian stock market, marking the sixth consecutive session of losses. In contrast, Domestic Institutional Investors (DIIs) emerged as net buyers, infusing ₹6,558 crore into Indian equities. The data for the NSE (National Stock Exchange) revealed that FIIs cumulatively purchased ₹10,239.05 crore worth of Indian equities but sold ₹17,941.58 crore, resulting in a net outflow of ₹7,702.53 crore on Thursday. Meanwhile, DIIs injected ₹13,600.71 crore and offloaded ₹7,042.26 crore, resulting in a net inflow of ₹6,558.45 crore.

     

    The ongoing trend of FIIs selling Indian equities is attributed to several factors, including rising US bond yields and the strength of the US dollar index. These global factors have contributed to the bearish sentiment in the market.

     

    Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, explained that against the backdrop of weak global cues, investors opted to divest from Indian equities on the monthly Futures and Options (F&O) expiry day. This resulted in the benchmark Nifty closing below the 19,000 mark, with a sell-off observed in frontline banking, automobile, and IT stocks. Chouhan noted that investor concerns are related to ongoing geopolitical tensions in West Asia, economic uncertainties, and apprehensions about interest rate hikes, which have collectively led to a bearish stance being maintained for six consecutive sessions.

     

    In terms of market performance on Thursday, the Nifty 50 closed with a substantial loss of 265 points, or 1.39%, at 18,857.25, while the Sensex concluded at 63,148.15, down by 901 points, or 1.41%. Mid-cap and small-cap stocks also experienced losses, though to a lesser extent. The BSE Midcap index declined by 1.06%, while the Smallcap index saw a 0.32% decrease.

     

    During the six-day losing streak, both the Nifty 50 and Sensex recorded declines of about 5% each. Additionally, the combined market capitalization of companies listed on the BSE decreased from nearly ₹323.8 lakh crore to approximately ₹306 lakh crore.

     

    Vinod Nair, Head of Research at Geojit Financial Services, observed that Q2 results in the Indian market have fallen short of expectations, causing disappointments similar to those experienced in developed economies. He emphasized that the risks associated with a potential economic slowdown due to geopolitical factors and elevated interest rates are leading to a downgrade in earnings and valuations. Moreover, the influence of expiry-led volatility is intensifying selling pressure and prompting investors to exercise caution.

     

    As market dynamics continue to evolve, investors are closely monitoring global and domestic developments that could impact market sentiment and performance.

  • Indian Stock Market Continue Slide Amid Global Turbulence

    Indian Stock Market Continue Slide Amid Global Turbulence

    Indian stock market witnessed a prolonged decline, marking the fifth consecutive session of losses, with banking and IT shares leading the way, all against the backdrop of ongoing global turbulence.

     

    Foreign institutional investors (FIIs) significantly impacted the market, selling Indian company stocks worth ₹13,312.21 crore while purchasing stocks amounting to ₹9,075.61 crore. The net result was an outflow of ₹4,236.60 crore, according to data from the National Stock Exchange (NSE). On the other hand, domestic institutional investors (DIIs) exhibited a contrasting pattern by buying equities worth ₹9,638.55 crore and offloading shares worth ₹6,069.19 crore, resulting in a net inflow of ₹3,569.36 crore, as per the exchange data.

     

    The BSE Sensex, a benchmark index comprising 30 major stocks, witnessed a substantial decline of 522.82 points, or 0.81%, concluding at 64,049.06 points. During the day, it experienced an even steeper drop of 659.72 points, or 1.02%, reaching a low of 63,912.16 points. Similarly, the NSE Nifty, another significant market index, declined by 159.60 points, or 0.83%, closing at 19,122.15.

     

    Over the course of the last five days, the Sensex has registered a steep fall of 2,379.03 points, equivalent to a 3.58% decline. This period has also seen a substantial erosion in the market capitalization of BSE-listed companies, with a total loss of ₹14.60 lakh crore, bringing the market capitalization to ₹3,09,22,136.31 crore.

     

    In the broader market, the BSE smallcap index observed a 0.77% decline, while the midcap index fell by 0.52%. Notably, the sectoral indices portrayed a similar downward trend, with the technology sector experiencing a notable drop of 1.39%. The telecommunications and utilities sectors followed closely, recording declines of 1.29% and 1.25%, respectively. The IT sector also felt the impact, with a 1.13% decline, while power, financial services, realty, and bankex indices faced declines ranging from 0.70% to 1.09%. The sole sector showing gains was the metal sector.

     

    On the currency front, the Indian rupee experienced some fluctuations during the day’s trading. It initially strengthened against the US dollar but later paired those gains, eventually closing 2 paise lower at 83.18 against the US dollar. The rupee’s performance was influenced by the weakness seen in most of its Asian counterparts, especially as the offshore Chinese yuan slipped by 0.17% to 7.32 against the US dollar.

     

    The interbank foreign exchange market saw the rupee opening stronger by 8 paise at 83.08. Throughout the trading session, it fluctuated between its peak of 83.08 and its lowest point at 83.19 against the US dollar. Earlier in the week, the rupee had closed 4 paise lower at 83.16 against the US dollar.

     

    Despite the challenges, the rupee found some support in the form of softening crude oil prices and foreign equity investors’ buying activity. These factors provided some respite for the Indian currency amidst a complex global economic landscape.

  • FIIs Expected to Extend Selling Streak in October

    FIIs Expected to Extend Selling Streak in October

    Foreign institutional investors (FIIs) are likely to continue their selling streak into October as the investors have started the month on a muted note over high US bond yields. This comes as frontline indices Sensex and Nifty 50 extended losses into the second consecutive session on Wednesday, October 4. However, on a positive note, domestic institutional investors (DIIs) are once again net buyers, injecting ₹1,769.49 crore into Indian stocks on the same day.

     

    According to the National Stock Exchange (NSE) data, FIIs cumulatively bought ₹9,848.55 crore worth of Indian equities but sold ₹14,272.57 crore, resulting in an outflow of ₹4,424.02 crore on Wednesday. In contrast, DIIs infused ₹10,050.08 crore and offloaded ₹8,280.59 crore, registering an inflow of ₹1,769.49 crore. This contrasting behavior of FIIs and DIIs indicates the complex dynamics at play in the Indian stock market.

     

    Analysts point out that FIIs have sold ₹25,000 crore in cash markets over the last month. The primary catalyst behind this sustained selling spree is the surge in US Treasury yields, which recently reached a 16-year high. Additionally, crude oil prices nearly touched $98 per barrel last week, further fueling concerns over high-interest rates and their potential impact on the global economy. These factors have largely supported the FII selling streak that began in August.

     

    Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the situation, stating, “Global cues are negative for markets in the near-term. The sustained rise in US bond yields, which has triggered continuous FII selling, is showing no signs of abating. The dollar index is now clearly above 107, and the US 10-year bond yield is at 4.83 per cent. This means FIIs will continue to sell, and the bulls will be on the back foot.”

     

    As the Indian stock market navigates through these challenging times, investors will closely monitor developments in US bond yields and global economic trends to gauge the future trajectory of FIIs’ investment patterns. The coming weeks will be critical in determining whether the selling streak persists or if there are potential opportunities for a market rebound.

     

    The influence of high US bond yields and global economic uncertainties continues to weigh on the actions of FIIs in the Indian stock market. While DIIs maintain a positive stance, the persistent selling by FIIs poses challenges for market participants, making it essential for investors to remain vigilant and adapt to evolving market conditions.

  • FIIs Continue Selling Streak Despite Nifty and Sensex’s Rebound

    FIIs Continue Selling Streak Despite Nifty and Sensex’s Rebound

    On Wednesday, September 27, the Indian stock market showed signs of recovery as both the Sensex and Nifty snapped their six-day losing streak. However, amidst this positive development, Foreign Institutional Investors (FIIs) continued their selling streak, raising concerns in the financial arena. On the flip side, Domestic Institutional Investors (DIIs) shifted gears and became net buyers once again, injecting ₹386 crore into Indian stocks.

     

    According to data from the National Stock Exchange (NSE), FIIs collectively purchased ₹9,575.17 crore worth of Indian equities. However, their selling activity was even more substantial, with a total offload of ₹9,929.52 crore. This resulted in a net outflow of ₹354.35 crore on Wednesday. In contrast, DIIs displayed a more optimistic stance by investing ₹8,419.68 crore and offloading ₹8,033.40 crore, leading to a net inflow of ₹386.28 crore.

     

    Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the current state of the Indian equity markets. He pointed out that a “triple whammy” of factors is currently impacting the market’s performance. Firstly, there is the rising value of the dollar, which can have implications for foreign investments and currency exchange rates. Secondly, the spiking US bond yields indicate a shift in global investment preferences, which can influence capital flows. Lastly, the high prices of Brent crude oil add to the complexities, as they affect not only India’s oil imports but also the broader global economic outlook.

     

    Furthermore, Dr. Vijayakumar highlighted that the cues from the US market are currently negative. It appears that the market is factoring in a scenario of a “higher for longer” interest rate regime in the United States. Such a scenario may not be favorable to equity markets in the near term, as higher interest rates can lead to increased borrowing costs for businesses and affect consumer spending patterns.

     

    While the Sensex and Nifty have shown signs of a rebound, the continued selling by FIIs and the complex global economic factors at play indicate a cautious approach in the Indian equity markets. The dynamics of the market, particularly in light of the global macroeconomic landscape, will continue to be closely monitored by investors and experts alike.

  • FIIs Extend Selling Streak as Sensex and Nifty Close

    FIIs Extend Selling Streak as Sensex and Nifty Close

    Foreign institutional investors (FIIs) continued their selling streak as Sensex and Nifty closed lacklustre on Tuesday, September 26, tracking weak global cues. The domestic institutional investors (DIIs) turned net buyers and invested ₹715 crore in Indian stocks today.

     

    As per the NSE data, FIIs cumulatively bought ₹8,750.81 crore of Indian equities, while they sold ₹9,444.28 crore — resulting in an outflow of ₹693.47 crore on Tuesday. Meanwhile, DIIs infused ₹7,502.47 crore and offloaded ₹6,787.72 crore, registering an inflow of ₹714.75 crore.

     

    The US Treasury yields hit a multi-year high and the US dollar rose to a 10-month high level amid concerns over interest rates staying high for an extended period and its impact on the global economy. This has largely supported the FII selling streak since August. In September so far, FIIs have sold ₹20,593 crore in Indian markets, while DIIs have invested ₹14,748 crore.

     

    Market analysts expect FII’s to continue selling in Indian markets as long as US bond yields are on an uptrend. Profit-booking in markets can continue over FII activity. Meanwhile, DIIs buying interest offsets the risk to a certain extent.

     

    ‘’The US 10-year bond yield climbing to a 10-month high of 4.54 per cent and the dollar index spiking to 105.94 are headwinds for the market. This is getting reflected in the sustained FII selling which has taken the net FII sell figure in September, so far, to ₹20,593 crore,’ said said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

     

    The buying by DIIs, at ₹13,748 crore, is supporting the market but is not strong enough to give confidence to the bulls. It remains to be seen how this tug of war plays out in the near-term,” added Dr. V K Vijayakumar.

     

    The US Federal Reserve, in its latest policy decision, held its overnight benchmark interest rate to 5.25 per cent – 5.50 per cent, however, it signalled that another rate hike is possible before the end of the year.

     

    “The Fed’s hawkish pause message has created a global risk-averse sentiment in global equity markets. The spike in the dollar index to 105.52 and the US 10-year bond yield shooting up to a 16-year high of 4.5 per cent are negative for equity markets, particularly emerging markets,” said Dr. V K Vijayakumar.

     

    Domestic equity benchmarks Sensex and Nifty settled lower on Tuesday due to select profit taking in IT and banking shares in line with weak Asian markets and continuous foreign fund outflows.

     

    Nifty 50 opened at 19,682.80 against the previous close of 19,674.55 and touched the intraday high and low of 19,699.35 and 19,637.45 respectively. Nifty 50 finally closed at 19,664.70, down 10 points, or 0.05 per cent. The Sensex closed 78 points, or 0.12 per cent, lower at 65,945.47.

     

    The BSE Midcap index also ended in the red, falling 0.09 per cent but the BSE Smallcap index managed to clock a gain of 0.33 per cent. IT stocks remained weak, falling 0.5 per cent on worries over demand uncertainties due to a higher interest rate environment in the US, a key market for Indian IT companies.

     

    Meanwhile, long-term investors can utilise the weakness in the market as an opportunity to buy high-quality stocks in financials, capital goods, and autos ignoring the near-term volatility in the market, according to analysts.

  • DIIs Invest ₹850 Crore in Indian Stocks

    DIIs Invest ₹850 Crore in Indian Stocks

    Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market on Wednesday, even as domestic markets saw increased buying activity and brushed aside pessimism from the previous session. In contrast, domestic institutional investors (DIIs) remained net buyers, injecting ₹850 crore into Indian stocks.

     

    According to data from the National Stock Exchange (NSE), FIIs collectively purchased ₹10,375.25 crore worth of Indian equities but sold ₹12,006.88 crore, resulting in an outflow of ₹1,631.63 crore. On the other hand, DIIs invested ₹8,104.69 crore and offloaded ₹7,254.83 crore, resulting in an inflow of ₹849.86 crore.

     

    The sustained investment by DIIs, coupled with robust retail buying, is providing support to the Indian stock market, even in the face of FII selling. Despite net institutional selling by foreign investors, the Nifty index has reached record highs this month. Additionally, there has been notable activity in the mid-and small-cap segments, indicating active participation by retail investors in the market rally.

     

    On the trading front, domestic markets closed higher on Wednesday, with the Nifty index surpassing the historic 20,000 mark for the first time. Positive macroeconomic data triggered buying in sectors such as banking, energy, and telecom, contributing to the market’s gains. The Sensex settled at 67,466.99, marking an increase of 245.86 points or 0.37 percent. This marked the ninth consecutive session of gains, representing the longest winning streak in the last five months.

     

    Furthermore, mid and small-cap stocks, which had experienced notable losses in the previous session, resumed their upward trajectory. The BSE Midcap index recorded a gain of 0.19 percent, while the Smallcap index saw a notable rise of 0.85 percent. Key players in the market included Bharti Airtel and Titan Company, which emerged as top gainers, while M&M and L&T were among the major drags.

     

    Recent government data indicated that India’s retail inflation rate declined to 6.83 percent in August, following a 15-month high of 7.44 percent in July. This drop was primarily driven by softer prices of vegetables, although it still remains above the Reserve Bank of India’s comfort zone.

     

    Market analysts are closely monitoring the Nifty index’s movement. Rupak De, Senior Technical Analyst at LKP Securities, highlighted the importance of the 19,900 level as a key support level, with a drop below this level potentially leading to market corrections. He also pointed out that the 20,100-20,150 range is likely to act as resistance, and a clear breakthrough above 20,150 could indicate a sustained upward trend for Nifty.

  • Domestic Equities Stumble as FIIs Invest and DIIs Sell

    Domestic Equities Stumble as FIIs Invest and DIIs Sell

    Foreign institutional investors (FIIs) made net investments of ₹3,370.90 crores in share purchases, while domestic institutional investors (DIIs) sold shares for a net total of ₹193.02 crores.

     

    During the month until July 21, FIIs made net purchases of shares worth ₹19,696.66 crore, while DIIs sold shares worth ₹10,196.92 crore. However, despite these investment trends, the domestic equities market experienced a downturn on Friday, breaking a six-day winning streak. The Nifty witnessed a continuous decline throughout the day and closed at approximately 19,745 levels after opening at a lower price. Several industries saw losses, with the IT sector facing the greatest setbacks, followed by FMCG and energy companies.

     

    While the overall market sentiments were mixed, the performance of broader indices, representing a wider range of stocks, played a role. Post the Q1 results, shares of Infosys and HUL witnessed declines. Another key index component, Reliance Industries (RIL), also experienced a downturn ahead of its Q1 results, which were anticipated later that day.

     

    The benchmark index, S&P BSE Sensex, dropped 887.64 points or 1.31% to 66,684.26. Similarly, the Nifty 50 index declined by 234.15 points or 1.17% to 19,745. During the past six consecutive sessions, the Sensex had gained 3.33%, while the Nifty rose by 3.07%. In the broader market, the S&P BSE Mid-Cap index declined by 0.26%, while the S&P BSE Small-Cap index rose by 0.13%.

     

    Major drags on the market included Infosys (down 8.18%), Hindustan Unilever (down 3.65%), Reliance Industries (down 3.19%), and TCS (down 2.68%). Market breadth was negative, with 1,615 shares rising and 1,773 shares falling on the BSE. A total of 126 shares remained unchanged. The NSE’s India VIX, which gauges market volatility expectations, declined by 2.54% to 11.49.

     

    Mr. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, provided daily market commentary, noting that domestic equities paused just before reaching the 20k zone. The Nifty opened lower due to selling in IT stocks after Infosys lowered its FY24 growth guidance. The Nifty closed with a loss of 234 points (-1.2%) at 19,745 levels. Broader markets showed mixed results, with the Nifty Midcap 100 down by -0.4%, while the Nifty Smallcap 100 rose by +0.7%. Except for PSU Bank and Auto sectors, all other sectors ended in the red, with IT, Consumer Durables, and FMCG being the major laggards. Investors are closely monitoring the upcoming policy meetings of the US Federal Reserve and European Central Bank next week, along with various macro data releases. As the result season gains momentum, there is expected to be a lot of stock-specific actions influencing the domestic equities market in the coming week. Investors will also closely follow the results of Index heavyweight Reliance and the Banking sector, with ICICI Bank and Kotak Bank announcing their results over the weekend.