BackFIIs sells ₹10,927 crore in Indian equities; DIIs infuse ₹6,361 crore: NSE Data
FIIs cumulatively sold ₹10,927 crore and purchased over ₹10,471.83 crore, resulting in an outflow of ₹455 crore on Tuesday.
PremiumForeign institutional investors (FIIs) continued selling on Tuesday, November 21, amid weak global cues.
FIIs cumulatively sold ₹10,927 crore and purchased over ₹10,471.83 crore, resulting in an outflow of ₹455 crore on Tuesday. Meanwhile, domestic institutional investors (DIIs) infused ₹5,640 crore and offloaded ₹6,361 crore, registering an inflow of ₹721 crore, as per data published on National Stock Exchange website on November 21.
Meanwhile, on Monday, FIIs sold ₹9,421 crore and purchased over ₹8,776 crore, resulting in an outflow of ₹645 crore. And DIIs invested ₹ 6,646 crore and offloaded ₹6,369 crore, registering an inflow of ₹77 crore.
FII have been divesting Indian equities since October, driven by historically high US bond yields, the strengthening dollar index, and geopolitical uncertainties stemming from the Israel-Hamas conflict. These combined factors have exerted downward pressure on market sentiment.
Despite ongoing concerns about elevated interest rates and a global economic slowdown, foreign inflows have remained subdued. However, the outflow in November has notably eased due to lower US bond yields and a decline in crude oil prices.
Analysts believe that despite facing numerous challenges, the Indian market demonstrates remarkable resilience. Foreign investors are increasingly worried that selling off their investments now could result in missing out on a potential upswing in the Indian market. This concern may act as a deterrent, preventing Foreign Institutional Investors (FIIs) from engaging in significant selling activities in the upcoming days.
"Today, the market exhibited positive momentum, with attention centred on the minutes of the latest Fed meeting. The declining inflation and the recent cooling job data in the US provides foundation for a dovish comment from the Fed. The drop in bond yields and the dollar index suggests mounting speculation regarding the potential peak in the interest rate cycle. This will attract funds to emerging markets. The gain in the broad market was led by consumer durables and realty, thanks to a strong rebound in festive demand," said Vinod Nair, Head of Research at Geojit Financial Services.
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