FIIs halt 3 days losing streak, invests ₹386 crore in Indian stocks on 6 June; DIIs turn net sellers
2 min read 06 Jun 2023, 05:50 PM ISTFIIs ended their three-day losing streak with an inflow of nearly ₹386 crore ($52 million) in Indian equities, while DIIs turned net sellers after three consecutive days of buying. Investors will be focusing on RBI's June 2023 monetary policy which is scheduled to be announced later this week.
PremiumForeign institutional investors (FIIs) halted their three days losing streak on Tuesday with an inflow of nearly ₹386 crore in Indian equities even when the overall sentiment being muted due to steep selloff in IT stocks. On the other hand, domestic institutional investors (DIIs) turned net sellers after three consecutive days of buying in domestic equities.
As per NSE data, FII bought ₹8,963.44 crore and offloaded ₹8,577.73 crore in Indian equities on June 6th --- resulting in an outflow of ₹385.71 crore.
However, DIIs sold more today aggregating to ₹6,435.75 crore against their buying of ₹5,946.73 crore in the stocks -- registering an outflow of ₹489.02 crore during the day.
Today, Sensex closed at 62,792.88, up by 5.41 points or 0.01%. Similarly, Nifty 50 finished at 18,599 up by 5.15 points or 0.03%.
On the previous day, FIIs sold ₹700.98 crore worth of equities, while DIIs were buyers to the tune of ₹1,195.98 crore.
Read here: Top gainers, losers today: Ultratech Cement, Infosys, Tech Mahindra, Wipro, TCS; check full list here
On current market performance, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Markets remained volatile and ended almost unchanged amid mixed cues. After the flat start, Nifty drifted lower as the day progressed however a sharp recovery in the last half an hour trimmed all the losses. Eventually, Nifty settled closer to the day’s high at 18,599 levels. On the sectoral front, auto, realty and pharma were the top contributors while IT traded under pressure. Among the broader pack, the smallcap index managed to gain nearly half a percent while the midcap ended almost unchanged."
The start of June has been broadly on the selling side from FIIs, but DIIs have been net buyers before the pattern changed on June 6th.
Last month, FIIs made their biggest monthly buying of 2023 as of now, to ₹27,856.48 crore. However, DIIs were net sellers with an outflow of ₹3,306.35 crore, as per Stock Edge data.
Going ahead, in Indian markets, Mishra said, the buoyancy in select sectors is helping the index to hold strong despite mixed global cues and the underperformance of the banking pack.
Read here: Can the market see a deep correction from peak levels? What should be your strategy?
He added, "We feel it is prudent to remain focused on identifying buying opportunities from the performing sectors viz. auto, FMCG, realty etc amid consolidation. A decisive break above 18,700 would fuel the next leg of up move towards the record high."
According to Mitul Shah - Head of Research at Reliance Securities, the 4QFY23 earnings season has ended with the sample of NSE 500 companies excluding BFSI reporting a revenue growth of 16% YoY/8% QoQ while EBITDA grew 18% YoY/12% QoQ as companies passed on higher costs to consumers. EBITDA margins improved 100bps sequentially. Adj PAT rose 20% YoY/43% QoQ. Sectors such as automobiles, cement, FMCG, consumer discretionary reported healthy margin improvement sequentially while metals and retail saw contraction.
RBI policy is the next big thing that the market will focus on this week.
Shah said, "The RBI monetary policy committee will meet this week with the interest rate decision due on Thursday, 8th June. Consensus expectations are of a continued pause. Meanwhile, the onset of monsoon over India has gotten delayed."
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