Foreign Institutional Investors (FIIs) Continue Selling in Indian Equities

Foreign Institutional Investors (FIIs) Continue Selling in Indian Equities. Image/Reuters

On September 12, domestic benchmark indices, the Sensex and Nifty, ended lower, snapping their seven-day winning streak due to profit booking. During this session, domestic institutional investors (DIIs) remained net buyers, investing ₹259 crore in stocks.

As per NSE data, FIIs bought ₹13,653.37 crore worth of Indian equities but sold ₹14,700.56 crore, resulting in a net outflow of ₹1,047.19 crore. On the other hand, DIIs made net investments of ₹259.48 crore. In the cash market, FIIs invested ₹1,437 crore following five consecutive days of selling.

Despite the net institutional selling by foreign investors, Nifty crossed the psychological 20,000-mark this month, with retail investors actively participating in the rally, particularly in mid-and-small-cap segments. DIIs continued their consistent buying trend, thanks to strong flows into domestic mutual funds.

Market analysts noted that FIIs’ purchase, especially when the US 10-year yield was at 4.29 percent, indicated a “fear of missing out” (FOMO) factor driving their decision. DIIs have played a crucial role in preventing the rupee from falling below the 83.25 level during recent corrections.

While Sensex and Nifty ended lower on September 12, exhibiting significant volatility throughout the session, mid-and-small-cap segments witnessed strong selloffs. Sensex closed at 67,221.13, up 94 points (0.14%), while Nifty closed at 19,993.20, down 3 points (0.02%).

During the day, Nifty hit its all-time high of 20,110.35, but volatility increased with the VIX reaching 11.69, the highest since August 31. Midcap and smallcap indices suffered significant declines, with the BSE Midcap index falling 2.96% and the BSE Smallcap index plunging 4.02%.

The short-term outlook for Nifty is expected to remain strong as long as it stays above the critical short-term support level of 19,780. A decisive move above 20,100-20,150 could potentially push Nifty towards 20,500 in the short term.

Overall, despite profit booking and heightened volatility, Indian equities continue to draw interest from both domestic and foreign investors.

About the Author

VoM News Desk

News Desk VoM

VoM News Desk -is an online web portal in jammu Kashmir offers regional, National & global news.