FIIs offload ₹1,327 crore in Indian equities on high US bond yields, DIIs invest ₹801 crore; what lies ahead?
Nifty extended losses for the fourth straight session on Friday, September 22. The domestic institutional investors (DIIs) turned net buyers and invested ₹80 crore in Indian stocks today. As per the NSE data, FIIs cumulatively bought ₹10,840.20 crore of Indian equities, while they sold ₹12,166.94 crore --- resulting in an outflow of ₹12,166.94 crore on Friday.
Meanwhile, DIIs infused ₹7,902.06 crore and offloaded ₹7,100.79 crore, registering an inflow of ₹801.27 crore. FIIs have sold ₹7,300 crore in the last three trading sessions and around ₹16,934 crore in Indian equities till September 21, according to analysts. US Treasury yields rose to their multi-year high levels and a stronger US dollar has widely triggered FII selling.
‘’The FIIs have reversed their ‘Buy India strategy’ which they have been following in the last 3 months with selling to the tune of ₹16,934 crore in September through 21st,'' said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The US Federal Reserve, in its latest policy decision, held its overnight benchmark interest rate to 5.25 per cent - 5.50 per cent, however, it signalled that another rate hike is possible before the end of the year.
"The Fed’s hawkish pause message has created a global risk-averse sentiment in global equity markets. The spike in the dollar index to 105.52 and the US 10-year bond yield shooting up to a 16-year high of 4.5 per cent are negative for equity markets, particularly emerging markets,'' said Dr. V K Vijayakumar.
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