FIIs Resume Selling Streak Amid Weak Asian Market Cues

FIIs Resume Selling Streak Amid Weak Asian Market Cues

VoM News Desk | November 17, 2023 | 11:01 PM IST | Breaking News | Follow on Google News

FIIs Resume Selling Streak Amid Weak Asian Market Cues

FIIs Resume Selling Streak Amid Weak Asian Market Cues

Foreign Institutional Investors (FIIs) continued their selling trend in the Indian stock market on Friday, despite a brief pause on November 16, influenced by weak signals from Asian markets.

FII and DII Market Activity

• November 16 Performance: On this day, FIIs ended their selling streak, buying stocks worth ₹13,546 crore, which contributed to the stock market’s positive performance for the second consecutive day. However, the net outflow was ₹957.25 crore.
• November 17 Performance: FIIs sold shares worth ₹12,035.41 crore but also purchased shares amounting to ₹11,557, resulting in a net inflow of ₹477.6 crore. Domestic Institutional Investors (DIIs) had a net inflow of ₹565.48 crore.

Factors Influencing FII Behavior

The divestment by FIIs since October is attributed to several global factors, including high US bond yields, a strong dollar index, and geopolitical uncertainties, particularly the Israel-Hamas conflict. These factors have contributed to a bearish sentiment in the market.

Impact of Global and Domestic Trends

• Global Trends: Declining US bond yields and a fall in Brent crude oil prices to $77.5 per barrel are seen as positive indicators for the Indian market, particularly benefiting sectors like aviation, tyres, and paints.
• Domestic Trends: The RBI’s decision to increase the risk weighting on unsecured loans is viewed negatively for the financial sector.

Outlook and Sector Focus

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that the shift of FIIs to buyers aligns with the declining bond yields in the US. He anticipates increased interest in IT, automobiles, telecom, and construction-related segments, while financials may face a temporary impact due to RBI’s recent action.

VoM News Desk

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