Foreign Investors Continue Selling Streak in Indian Markets as Domestic Institutions Invest Heavily

Foreign Investors Continue Selling Streak in Indian Markets as Domestic Institutions Invest Heavily

VoM News Desk | September 9, 2023 | 03:49 AM IST | Breaking News | Follow on Google News

Foreign Investors Continue Selling Streak in Indian Markets as Domestic Institutions Invest Heavily. Image/iStock

FIIs Sell ₹224.22 Crore Worth of Indian Equities

Foreign Institutional Investors (FIIs) continued their selling streak in the Indian stock markets on Friday, September 8, even as domestic markets rose to a six-week high, led by gains in energy stocks. FIIs collectively bought ₹9,850 crore worth of Indian equities but sold ₹10,074.71 crore, resulting in an outflow of ₹224.22 crore, according to data from the National Stock Exchange (NSE).

Domestic Institutional Investors Turn Net Buyers

In contrast, domestic institutional investors (DIIs) turned net buyers in the session. DIIs invested ₹8,324.05 crore and offloaded ₹7,173.90 crore, resulting in an inflow of ₹1,150.15 crore. This trend suggests that sustained DII investment, along with strong retail buying, is driving the Indian stock market higher despite FII selling.

Performance in September and Recent Market Gains

In September so far, FIIs have sold ₹8,608 crore in the cash market, while DIIs have bought ₹5,715 crore. Despite FII selling, strong retail and DII participation have helped propel domestic equity benchmarks. On Friday, both the Sensex and Nifty recorded their sixth consecutive session of gains and posted their best week in two months, each gaining nearly 2 percent.

Support from Domestic Investors

Sustained DII investment, bolstered by robust retail buying, is underpinning the market’s upward trajectory even in the face of FII selling. Small- and mid-cap stocks have been particularly strong and are outperforming benchmark indexes. This active participation of retail investors is contributing to the market’s resilience.

Challenges Ahead for the Market

While the Indian market is currently performing well, analysts caution that several challenges lie ahead. Rising US dollar, a fresh spike in US treasury yields, and persistent FII selling could dampen investor sentiment. The strength of the US dollar and US bond yields are particularly influential factors in FII selling.

Near-Term Outlook and Potential Record Highs

Despite the challenges, market observers believe that the current sentiments of sustained buying by DIIs and the strength in broader indices will drive the Nifty to record high levels, potentially exceeding 19,900-20,000. A “buy on dips” strategy is gaining traction among traders, and sectors like banking, IT, L&T, and RIL have the potential to sustain the rally in the near term.

Looking Ahead

The market’s robust overall trend remains intact, supported by consistent trading above critical moving averages. However, analysts note that a decisive move above the 19,900 level is necessary for the Nifty to advance towards the 20,200 mark. On the downside, substantial Put writing at the 19,700 level offers strong support for the Nifty.

VoM News Desk

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