FIIs offload ₹1,500 crore in Indian equities, DIIs invest ₹314 crore as Nifty50 snaps 6-day losing streak
- The domestic market has been under pressure in October because of sharp gains in the US bond yields, foreign capital outflow, unimpressive Q2 earnings and geopolitical tensions. Nifty 50 is down about 3 per cent in October so far.
Foreign institutional investors (FIIs) extended their selling spree on Friday, October 27, even as domestic markets snapped their six-day losing streak on all-round buying amid positive cues. The domestic institutional investors (DIIs) infused ₹314 crore in Indian stocks today.
As per the NSE data, FIIs cumulatively bought ₹9,360.25 crore of Indian equities, while they sold ₹10,860.38 crore --- resulting in an outflow of ₹1,500.13 crore on Friday. Meanwhile, DIIs infused ₹7,135.99 crore and offloaded ₹6,822.30 crore, registering an inflow of ₹313.69 crore.
FIIs are selling Indian equities amid rising US bond yields and the strength of the dollar index. These combined factors have weighed on market sentiment.
"The domestic market recovered well compared to yesterday’s sharp corrections, due to restrained FII’s selling along with moderation in currency and global bond yield volatility. Till date, the Q2 results outcome is decent, which is in-line with the buoyant estimate,'' said Vinod Nair, Head of Research at Geojit Financial Services.
‘’The market is not enthusiastic as we are at the cusp of earnings downgrade in anticipation of further slowdown in the world economy due to elevated interest rate and geopolitical risk,'' added Nair.
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Stock Market Today
The domestic market has been under pressure in October because of sharp gains in the US bond yields, foreign capital outflow, unimpressive Q2 earnings and geopolitical tensions. Nifty 50 is down about 3 per cent in October so far.
On Friday, Nifty 50 closed 190 points, or 1.01 per cent, higher at 19,047.25 while the Sensex closed at 63,782.80, up 635 points, or 1.01 per cent. Friday's gain in the market could be attributed to value buying after a recent correction in the market as concerns over interest rates, bond yields, Israel-Hamas war persist.
Mid and smallcaps outperformed the benchmarks. The BSE Midcap index rose 1.70 per cent while the Smallcap index ended with a gain of 1.89 per cent.
“Past week, Nifty and Sensex both declined by approximately 2.5 per cent, ranking them among the top losers in global equity markets. Smaller companies fared worse, with Nifty Midcap down 3 per cent and BSE Smallcap down 2 per cent. Factors contributing to this downturn included higher global interest rates, growth concerns, and lackluster Q2FY24 earnings,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Where are markets headed?
Tensions in Middle East, coupled with sticky US Treasury yields at around 5 per cent, triggered risk-off sentiment. Markets saw some respite after witnessing intense selling for seven consecutive session. ‘’We expect market to continue with its volatile move going forward ahead of key economic events and ongoing earning season,'' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
‘’Despite the strong rebound, we suspect the benchmarks are not out of the woods yet. For markets to remain buoyant, some resolution is needed between the on-going Israel-Hamas war. Technically, confirmation of major strength in Nifty only above the 19,700 mark,'' said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Technical View: "After relentless selling in recent days, the Nifty has temporarily paused its decline due to an oversold chart setup. However, the index closed significantly below the critical breakdown level of 19,250. As long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements,'' said Rupak De, Senior Technical analyst at LKP Securities.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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