Asia Press Agency

Tag: Nifty

  • 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.

  • 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.