FIIs Continue Selling Streak Amid Festive Season and Global Uncertainties

FIIs Continue Selling Streak

VoM News Desk | November 13, 2023 | 10:53 PM IST | Breaking News | Follow on Google News

FIIs Continue Selling Streak Amid Festive Season and Global Uncertainties

FIIs Continue Selling Streak Amid Festive Season and Global Uncertainties

Foreign institutional investors (FIIs) persisted with their selling spree in the Indian equities market amidst a festive season slowdown and global economic pressures. Meanwhile, domestic institutional investors (DIIs) also moderated their investments, reflecting a cautious approach amid current market conditions.

FII Outflows and DII Inflows

According to NSE data, FIIs experienced a net outflow of ₹1,244.44 crore on Monday, after purchasing equities worth ₹5,991.24 crore and selling ₹7,235.68 crore. In contrast, DIIs saw a net inflow of ₹830.40 crore, balancing the market to some extent. This pattern of FII outflows and DII inflows has become a notable trend in recent times.

Factors Influencing FII Sentiment

Several factors have contributed to the cautious stance of FIIs. These include high US bond yields, the strength of the dollar index, and geopolitical tensions arising from the Israel-Hamas conflict. Moreover, concerns about rising interest rates and a potential global economic slowdown have dampened foreign inflows.

Rupee’s Performance and Market Reaction

The Indian rupee ended marginally higher against the US dollar, closing at 83.33, a slight improvement from its previous close. This stability is partly attributed to the fall in crude oil prices. However, the domestic equity market faced pressure, with key indices Nifty 50 and Sensex closing lower. The rise in US treasury yields also influenced FII selling activities.

Market Outlook and Expert Analysis

Experts like Vinod Nair from Geojit Financial Services and Ajit Mishra from Religare Broking Ltd. suggest that while Indian equities were muted, the market’s downside is limited due to robust earnings and economic stability. The outlook for the market remains cautious yet hopeful, with a focus on stock selection and trading opportunities within a consolidating market.

VoM News Desk

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