FIIs sell ₹1,244 crore in Indian equities on rupee weakness, DII buying moderates as Nifty 50 consolidates post-Diwali
₹830 crore today, which was much lesser than the foreign capital outflow on a weaker rupee. As per the NSE data, FIIs cumulatively bought ₹5,991.24 crore of Indian equities, while they sold ₹7,235.68 crore --- resulting in an outflow of ₹1,244.44 crore on Monday. Meanwhile, DIIs invested ₹5,613.86 crore and offloaded ₹4,783.46 crore, registering an inflow of ₹830.40 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.
‘’The Indian rupee's weakness keeps FIIs cautious. However, the market's downside is limited by strong earnings, economic stability, and domestic institutional flows,'' said Vinod Nair, Head of Research at Geojit Financial Services. The Indian rupee ended little changed against the US dollar today amid a drop in crude oil prices.
The local unit ended 1 paise higher at 83.33 a dollar, compared to its previous close of 83.34. "A tick up in US treasury yields on Monday helped send the dollar to a fresh one-year high against the yen. Benchmark 10-year treasury yields pushed to a one-week high of 4.668 per cent.
The dollar climbed to 151.78 yen for the first time since mid-October of last year," reported Reuters. A fall in domestic equity market and persistent foreign fund outflows weighed on the local unit. Higher US bond yields also triggered FII selling today.
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