FIIs are net sellers on first day of June, outflow of ₹71 crore in Indian stocks; DIIs outrun with inflow of ₹489 cr
2 min read 01 Jun 2023, 07:35 PM ISTFIIs started June as net sellers after a stellar buying in May, while DIIs outperformed with an inflow of nearly ₹489 crore on Thursday in Indian equities. Broadly, the markets tone was volatile with Sensex and Nifty 50 extending their losing streak for second consecutive day.
PremiumAfter making a stellar buying in May 2023, foreign institutional investors (FIIs) started June month as net sellers. However, the selloff from FIIs was at a slower pace as the market's tone was broadly volatile. On the contrary, domestic institutional investors (DIIs) outperformed foreign investors with an inflow of nearly ₹489 crore on Thursday in Indian equities.
As per NSE data, FIIs buying value was at ₹8,751.66 crore, while they sold ₹8,822.73 crore -- resulting in an outflow of ₹71.07 crore on June 1st.
DIIs made a purchase of ₹5,715.08 crore worth of equities and offloaded ₹5,226.15 crore. Hence, their inflows stood at ₹488.93 crore.
After market hours on Thursday, Sensex ended at 62,428.54, down by 193.70 points or 0.31%. Nifty 50 closed at 18,487.75, lower by 46.65 points or 0.25%. Banking stocks witnessed the most selloff, on the contrary, smallcap stocks outperformed their counterparts. Auto, capital goods, and IT stocks witnessed an upside as well. Investors traded cautiously in global cues on expectations of inflationary pressure in the US after raising the debt ceiling.
Read here: FIIs end May month with a bang, inflow of ₹27,856.5 crore in Indian stocks; DIIs are net sellers
Talking about the current market performance, Ajit Mishra, SVP - of Technical Research, at Religare Broking said, "Markets traded volatile and ended marginally lower on the weekly expiry day. After the flat start, the Nifty oscillated in a narrow range and finally settled around the day’s low at 18487.75 levels."
Further, he added, "Meanwhile, a mixed trend was witnessed on the sectoral front wherein banking and financials traded under pressure while pharma and realty edged higher. The outperformance continued from the broader front as both ended in the green."
FIIs ended the month of May with a bang as they recorded an inflow of ₹27,856.48 crore --- which is the highest monthly buying of 2023 as of now. DIIs, on the other hand, are net sellers with an outflow of ₹3,306.35 crore in May.
Read here: Top 10 stocks that rose the most in May on BSE 500 Index; check full list here
Meanwhile, in May month, Sensex climbed by at least 1,267.5 points or 2.07%. While Nifty 50 zoomed by nearly 387 points or 2.13%.
Going ahead, Mishra said, "The recent movement in the index indicates a pause and dip in the banking and financials is causing turbulence however some stability in other sectors is offsetting the damage. Going ahead, a decisive break below 43500 in the banking index might deteriorate the market mood. Meanwhile, we reiterate our view to maintain the positive bias while keeping a check on positions."
Also, Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, "Nifty remains in an uptrend with trend support placed at 18150. As long as the index maintained this level we expect an uptrend to continue towards 18800-19000. For the short term, we are looking at 18400-18450 as a support zone. A breach of the trend levels could infuse volatility. Select commodity stocks look interesting from value and risk perspective while frontline IT stocks are expected to underperform in the near term."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
