One-Way Street: FPIs’ record-breaking run from India continues
Mumbai: India’s stock market slumped on Tuesday as continued selling by foreign investors, amid concerns over slowing earnings growth, heightened risk-off sentiment. The selloff was broad-based with mid-cap and small-cap stocks bearing the brunt of the souring mood among investors, resulting in flight of money to safe-haven assets such as gold, which extended its record-breaking streak.
The NSE Nifty fell 309 points, or 1.25%, to close at 24,472.10. The BSE Sensex declined 930.55 points, or 1.15%, to end at 80,220.72. Out of the 50 shares on the Nifty, 47 ended lower, while three notched up gains.
“We have seen Indian markets not do well recently becau se the earnings season has not been great,” said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies. “Also due to multiple IPOs, QIPs, and selloff by FPIs, there is an oversupply of securities in markets, despite strong domestic flows, taking prices downwards.”
Fear Gauge Jumps
The record-breaking run in Indian stocks in 2024 reversed in October after a rebound in Chinese markets triggered record outflows from local equities.
Overseas investors net sold shares worth ₹3,979 crore on Tuesday, taking the sale tally for October to ₹83,600 crore, their biggest monthly selling. Domestic institutions bought stocks to the tune of ₹5,869 crore on Tuesday. So far in October, they have pumped ₹83,300 into the market. Both indices have declined over 5% in the past month.
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