FIIs offload ₹6,240.5 crore in Indian equities this week, DIIs turn net buyers; What's behind this trend?
₹6,240.55 crore, while DIIs were buyers for all five sessions, with a total investment of ₹8,731.6 crore, according to stock exchange data. On a monthly basis, FIIs have sold shares in Indian markets to the tune of Rs. 14,171 crore between February 1-16, 2024.
As per the NSE data, FIIs cumulatively bought ₹13,802.04 crore of Indian equities, while they sold ₹12,165.87 crore --- resulting in an inflow of ₹253.28 crore on Friday, February 16. Meanwhile, DIIs invested ₹12,165.87 crore and offloaded ₹10,594.87 crore, registering an inflow of ₹1,571.00 crore. "The market has been range bound in recent days due to bouts of selling and buying.
During the last two days, FIIs sold equity worth ₹6,993 crore in the cash market while DIIs bought equity worth ₹5173 crore,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. ‘’The trend of FII selling is likely to continue since the 10-year US bond yield is high at 4.24 per cent.
The trend of DII buying too is likely to continue since the flows into the DIIs continue to be robust,'' added Dr. V K Vijayakumar. The global market construct continues to be favourable with the mother market US remaining resilient with S&P 500 at record highs.
Pockets of overvaluation in the broader market continue to be a worry. Banking stocks are fairly valued. RIL is strong, according to the analyst.
US Treasury yields jumped and the US dollar edged up while global stock indexes were mixed to near flat on Friday after data showed US producer prices increased more than expected in January. This added to the view that any interest rate cuts by the US Federal Reserve are not likely to happen soon. The yield on benchmark US 10-year notes rose 5.3 basis points to 4.293 per cent,
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