FIIs offload ₹693 crore in Indian equities as US bond yields climbs to 10 year-high, DIIs invest ₹715 crore
₹715 crore in Indian stocks today. As per the NSE data, FIIs cumulatively bought ₹8,750.81 crore of Indian equities, while they sold ₹9,444.28 crore --- resulting in an outflow of ₹693.47 crore on Tuesday. Meanwhile, DIIs infused ₹7,502.47 crore and offloaded ₹6,787.72 crore, registering an inflow of ₹714.75 crore.
The US Treasury yields hit a multi-year high and the US dollar rose to a 10-month high level amid concerns over interest rates staying high for an extended period and its impact on the global economy. This has largely supported the FII selling streak since August. In September so far, FIIs have sold ₹20,593 crore in Indian markets, while DIIs have invested ₹14,748 crore.
Market analysts expect FII's to continue selling in Indian markets as long as US bond yields are on an uptrend. Profit-booking in markets can continue over FII activity. Meanwhile, DIIs buying interest offsets the risk to a certain extent.
‘’The US 10-year bond yield climbing to a 10-month high of 4.54 per cent and the dollar index spiking to 105.94 are headwinds for the market. This is getting reflected in the sustained FII selling which has taken the net FII sell figure in September, so far, to ₹20,593 crore,' said said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The buying by DIIs, at ₹13,748 crore, is supporting the market but is not strong enough to give confidence to the bulls. It remains to be seen how this tug of war plays out in the near-term,'' added Dr. V K Vijayakumar.
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