FIIs sold ₹7,630 crore so far in Nov, snap selling streak on 15th day, DIIs infused ₹9,093 crore; What lies ahead?
₹7,630 crore in the first fortnight of November. The domestic institutional investors (DIIs) won the tug of war and remained net buyers in the first 15 days of the month. As per the NSE data, FIIs cumulatively bought ₹15,620.95 crore of Indian equities, while they sold ₹15,070.76 crore --- resulting in an inflow of ₹550.19 crore on Wednesday.
Meanwhile, DIIs invested ₹8,165.17 crore and offloaded ₹7,555.35 crore, registering an inflow of ₹609.82 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, however, the outflow in November has significantly moderated over lower US bond yields and declining crude oil prices. 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.
‘’FIIs are likely to turn buyers, lest they miss out on the rally in the best performing large economy in the world. Leading financials which were weighed down by FII selling will bounce back. Decline in CPI inflation in India is also a favourable factor,'' said Dr.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. ‘’Across sectors, a rally is likely. Financials, automobiles, real estate ,cement and platform digital companies will attract investment from DIIs, HNIs and retail
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