FIIs continue selling spree, offload ₹1,901 crore in Indian equities on global headwinds; DIIs invest ₹626 crore


Foreign institutional investors (FIIs) continue their selling streak on D-Street even as Indian markets snapped their two-day losing run on the back of positive global cues on Monday, August 21. The domestic institutional investors (DIIs) were net buyers and invested 626 crore during the session. Analysts expect foreign fund inflow to remain muted in the near-term on rising US ond yields and a stronger greenback against its peers.

As per the NSE data, FIIs cumulatively bought 8,074.95 crore of Indian equities, while they sold 9,976.05 crore — resulting in an outflow of 1,901.10 crore. Meanwhile, DIIs infused 6,157.40 crore and offloaded 5,531.15 crore, registering an inflow of 626.25 crore.

In the cash market, foreign portfolio investors (FPIs) sold stocks for 10,921 crore and were net sellers on 10 days and buyers in only three days in August, so far, according to analysts. However, the trend of FPI selling in August has been countered by strong buying led by DIIs, but it has turned out to be inadequate to arrest the decline in market.

Also Read: Jio Financial Services lists on bourses today, shares hit 5% lower circuit: What happens next?

On Monday, Sensex ended the session with a gain of 267 points, or 0.41 per cent, at 65,216.09 while the Nifty50 rose 83 points, or 0.43 per cent, to settle at 19,393.60. Mid and smallcaps outperformed the benchmark. The BSE Midcap and Smallcap indices ended 0.87 per cent and 0.71 per cent higher, respectively.

Jio Financial tumbled 5 per cent in its market debut and closed at the lower circuit. That led parent Reliance 1.44 per cent lower, with both stocks among the top Nifty losers.

Jio Financial Services’ share price will be in the “Trade-for-Trade” segment for 10 trading days. Within this segment, intraday trading is not allowed means any trade either on the buy side or on the sell side, has to necessarily be for delivery only.

European markets, including UK’s FTSE, France’s CAC and Germany’s DAX gained strength after a rout last week while government bond yields renewed their rise as oil prices stabilised.

In Asian markets, Seoul and Tokyo settled in the green, while Shanghai and Hong Kong ended lower. China’s central bank lowered its one-year lending rate by 10 basis points. However, it surprised analysts by keeping the five-year rate unchanged.

‘’Markets started the week with an uptick and gained nearly half a percent. After the initial choppiness, Nifty maintained a positive tone for most of the session however profit taking in the end trimmed some gains…The tone was mixed on the sectoral front wherein the metal and IT posted decent gains while auto and banking traded dull. The broader indices also participated in the move as both midcap and smallcap rose in the range of 0.6 per cent-0.9 per cent,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.


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Updated: 21 Aug 2023, 07:14 PM IST

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