News

Published: August 22, 2023
Updated: August 22, 2023

Foreign Investors Continue Selling: ₹1,901 Crore Offloaded Amid Global Uncertainties

In a day marked by positive global cues, Indian markets halted a two-day losing streak on Monday, August 21. However, foreign institutional investors (FIIs) persisted with their selling trend, while domestic institutional investors (DIIs) turned net buyers, investing ₹626 crore during the session. Analysts are predicting a subdued inflow of foreign funds due to rising US bond yields and a stronger dollar against its peers.

FIIs Sell, DIIs Buy:

According to NSE data, FIIs collectively purchased ₹8,074.95 crore worth of Indian equities but sold ₹9,976.05 crore, resulting in a net outflow of ₹1,901.10 crore. Conversely, DIIs injected ₹6,157.40 crore and divested ₹5,531.15 crore, amounting to an inflow of ₹626.25 crore.

FPI Activity and Market Performance:

In the cash market, foreign portfolio investors (FPIs) divested stocks worth ₹10,921 crore. Throughout August, FPIs were net sellers on 10 days and net buyers on only three days. Despite strong DII buying, the market's decline could not be fully countered.

Market Performance on Monday:

The Sensex concluded the session with a gain of 267 points (0.41%) at 65,216.09, while the Nifty50 climbed 83 points (0.43%) to settle at 19,393.60. Mid and small-cap stocks outperformed the benchmark, with BSE Midcap and Smallcap indices up 0.87% and 0.71%, respectively.

Jio Financial's Market Debut:

Jio Financial Services witnessed a 5% decline on its market debut, closing at the lower circuit. This influenced parent company Reliance, which saw a 1.44% drop. Both stocks ranked among the top Nifty losers.

Jio Financial's Trading Segment:

Jio Financial Services' share price will be limited to the "Trade-for-Trade" segment for the initial 10 trading days. In this segment, only delivery-based trading is allowed, preventing intraday transactions.

Global Market Overview:

European markets, including FTSE, CAC, and DAX, regained strength after last week's slump. Meanwhile, government bond yields continued to rise, stabilised by oil prices. In Asian markets, Seoul and Tokyo ended in the green, while Shanghai and Hong Kong faced losses. China's central bank surprised analysts by maintaining the five-year lending rate unchanged while lowering the one-year rate by 10 basis points.

Market Expert's Opinion:

Ajit Mishra, SVP - Technical Research at Religare Broking Ltd, noted that the week began with an uptick, resulting in nearly half a percent gains. Despite initial choppiness, Nifty sustained a positive stance for most of the session. The sectoral tone remained mixed, with metal and IT sectors showing gains while auto and banking sectors were subdued. Both midcap and smallcap indices participated in the move, rising between 0.6% and 0.9%.

Foreign investors continued their selling spree as positive global cues impacted Indian markets positively on Monday. While FIIs maintained their selling trend, DIIs became net buyers. The performance of individual stocks and sectors, along with global market movements, shaped the day's market dynamics.