Sensex Experiences Net Outflow as FIIs Sell and DIIs Buy

Sensex Experiences Net Outflow as FIIs Sell and DIIs Buy

VoM News Desk | October 17, 2023 | 10:15 AM IST | Breaking News | Follow on Google News

Sensex Experiences Net Outflow as FIIs Sell and DIIs Buy

Sensex Experiences Net Outflow as FIIs Sell and DIIs Buy

On Monday, the Indian stock market saw significant activity as Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) made contrasting moves. According to data from the National Stock Exchange (NSE), FIIs sold stocks, resulting in a net outflow of ₹593.66 crore, while DIIs bought equities, leading to an inflow of ₹1,184.24 crore.

Simultaneously, global investors are shifting their focus towards corporate earnings as companies start to release their quarterly results. Amidst ongoing concerns about the Middle East conflict, both US stocks and European shares experienced gains, with investors displaying risk-averse behavior.

Oil Prices Experience Decline

In the energy sector, the benchmark for US crude oil delivery in November dropped by $1.03, settling at $86.66 a barrel on Monday. Additionally, Brent crude for December delivery saw a decrease of $1.24, reaching $89.65 a barrel.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, offers insights into the evolving market scenario. The market is currently experiencing a risk-on sentiment driven by the hopes that the Israel-Hamas conflict will not escalate further. The upcoming visit of President Biden to Israel and Jordan, along with the deployment of two US aircraft carriers to the Eastern Mediterranean, sends a clear message to Iran and Hezbollah, discouraging them from intervening in the war. As a result, the market is optimistic that the conflict will remain localized.

The positive results of HDFC Bank, coupled with its bullish guidance and commentary, have the potential to support the market, given the bank’s significant weightage in the Nifty. Investors are also expecting good results from other leading banking institutions.

Stock Analysis and Focus on Specific Stocks

In the stock market, specific stocks are in focus. Avdhut Bagkar, a Derivatives & Technical Analyst at StoxBox, provides his views on several stocks:

1. CESC Ltd | Bullish: The stock is showing strength in absorbing selling pressure, and it has the potential to reach 95 and 100 once it surpasses the hurdle around 90. The current bias is supported within the range of 87 to 85.
2. CSB Bank Ltd | Bullish: After hitting a new 52-week high, this stock is displaying a decisive breakout, crossing the all-time high of 374. It is on a path to explore uncharted territories with a target range of 380 to 390 while maintaining support at 350.
3. Gujarat Ambuja Exports Ltd | Bullish: The stock has reached a new historic peak and is likely to continue moving upward. Immediate support stands at 350, and the price is expected to head towards the 400 level. The bullish momentum is evident in the overbought category of RSI.

China’s Economic Growth and Stimulus Considerations

In the global economic landscape, China’s economic growth is under scrutiny. Recent data indicates that China’s economic growth last quarter may have fallen short of Beijing’s annual target for 2023. The property sector and subdued demand have weighed on economic activity, raising concerns about the recovery’s fragility. There are reports of the Chinese government considering further stimulus measures to address these challenges. Upcoming data will shed light on GDP growth, industrial output, retail sales, investment, and unemployment, providing valuable insights into China’s economic outlook.

VoM News Desk

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