FII outflow moderates to ₹252 crore, DIIs infuse ₹823 crore with Nifty 50 up 1% on week; What lies ahead?
US Federal Reserve as well as declining crude oil prices. The domestic institutional investors (DIIs) tried to counterbalance the sell-off and emerged net buyers as they infused ₹823 crore in Indian stocks today. As per the NSE data, FIIs cumulatively bought ₹6,583.57 crore of Indian equities, while they sold ₹6,845.38 crore --- resulting in an outflow of ₹261.81 crore on Friday.
Meanwhile, DIIs invested ₹6,239.42 crore and offloaded ₹5,416.78 crore, registering an inflow of ₹822.64 crore. FIIs have sold Indian equities since October on record-high US bond yields, strength of the dollar index, and the geopolitical risks due to the Israel-Hamas war. These combined factors have since weighed on market sentiment.
Foreign inflow continues to be muted over concerns of an elevated interest rate and a global slowdown. Analysts reckon that the Indian market continues to exhibit resilience even in the midst of several challenges and there is a growing concern among foreign investors that if they continue to sell, they will miss out on the potential rally in the Indian market. This might restrain the FIIs from selling heavily in the coming days.
‘’The Indian market texture indicates that the ‘buy on dips’ strategy will continue to work. In Samvat 2080, Financials are likely to do well supported by attractive valuations and impressive growth. Sustained FII selling in financials, which is impacting the sector, will be only temporary,'' said Dr.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. ‘’The FOMO ( Fear of Missing Out) factor is likely to restrain the FIIs from aggressive selling. This will be favourable for the financial sector which has been bearing the brunt of FII selling,'' added Dr.
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