FPIs Continue Selling Indian Equities for 26th Consecutive Session

Foreign portfolio investors (FPIs) have remained net sellers of Indian equities for the 26th consecutive session, signaling ongoing trends of foreign capital outflows from the Indian market.

Latest Trading Figures

In the most recent trading session, foreign investors offloaded shares worth approximately Rs 4,329.8 crore. In contrast, domestic institutional investors (DIIs) responded to this trend by purchasing stocks valued at Rs 2,936.1 crore, highlighting a significant shift where domestic buyers are filling the void left by exiting foreign investors.

Recent Market Activity

Data from the National Stock Exchange reveals that over the last five trading days, FPIs have sold equities totaling Rs 15,517.4 crore, while DIIs have accumulated shares worth Rs 11,321.8 crore. This dynamic illustrates a strong preference among local institutions for equity acquisition amid foreign sell-offs.

Sector Performance and Market Sentiment

The sentiment in the market remains largely pessimistic. Recent performance indicates declines across all sector indices, with the benchmark indices such as the NSE Nifty 50 and BSE Sensex closing at their lowest points in over a month. The downturn was particularly influenced by significant drops in major companies like Reliance Industries Ltd. and HDFC Bank Ltd..

Market Capitalization and Future Outlook

In October alone, FPIs offloaded stocks worth Rs 1.14 lakh crore. Meanwhile, DIIs managed to accumulate shares valued at Rs 1.07 lakh crore during the same period. In contrast, September saw FPIs acquiring stocks worth Rs 15,423.4 crore as DIIs bought Rs 31,860.3 crore worth of shares.

Experts are suggesting caution in the current environment. Market technician Ameya Ranadive mentioned the immediate support level for the Nifty 50 is near 23,900. A breach of this level could signal further weakness in the market, intensifying the concerns of investors.

Conclusion

Overall, the net selling trend by FPIs indicates a careful reevaluation of the investment landscape in India, while DIIs appear to take advantage of these market conditions for potential gains.

FPIs, Equities, Investing