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FIIs continue to sell amid weak global cues, DIIs sell over ₹7,414 crore


The Foreign Institutional Investors (FIIs), on Friday, continued with its selling streak after a day halt on November 16 amid weak cues from the Asian markets. 

As per NSE data, published on November 16, FIIs cumulatively sold 12,035.41 crore and purchased over 11,557, resulting in an inflow of 477.6 crore on Friday. Meanwhile, DIIs invested 6,849 crore and offloaded 7,414 crore, registering an inflow of 565.48 crore.

On November 16, FIIs snapped their selling streak by purchasing worth 13,546 crore amid festive season after the stock market ended on a higher note for the second day straight.

FIIs cumulatively sold 12,589 crore, resulting in an outflow of 957.25 crore on Thursday. Meanwhile, DIIs invested 6,690 crore and offloaded 5,985 crore, registering an outflow of 705.65 crore, on Thursday.

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.

There are some important trends which will impact the market in the near-term. One, the big macro driver of this two day rally in the market – peaking and declining US bond yields – is very much in place. This will continue to impart resilience to the market. Two, the sharp decline in Brent crude to $ 77.5 is a positive for India’s macros and favourable for sectors that consume petroleum inputs like aviation, tyres and paints. Three, and this is a negative factor, the RBI action raising the risk weighting on unsecured loans is sentiment negative for financials,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He further added, “ It is important to understand that FIIs turning buyers is an important shift in tune with the declining bond yields in the US. In the near-term, IT, automobiles, telecom and construction-related segments will attract more buying since financials will see the temporary impact of the RBI action.”

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Updated: 17 Nov 2023, 06:09 PM IST

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