FPIs Start December as Net Sellers

Foreign portfolio investors (FPIs) have begun December on a negative note, continuing their trend of selling off Indian equities. This month marks the third consecutive session where overseas investors have acted as net sellers. In their latest move, FPIs sold stocks worth Rs 238.3 crore, while domestic institutional investors (DIIs) countered this trend by purchasing shares worth Rs 3,588.7 crore, as reported by the National Stock Exchange.

Year-to-Date Selling Pressure

As of now, FPIs have offloaded a substantial Rs 16,009 crore worth of Indian stocks throughout the year. This follows an extensive sell-off in the previous months; in November, they divested Rs 45,974.1 crore, and in October, the sales reached a staggering Rs 1.14 lakh crore. During the same periods, DIIs have shown resilience, acquiring stocks worth Rs 44,483.9 crore in November and approximately Rs 1.07 lakh crore in October.

Market Reactions and Trends

Looking ahead, there's speculation about a potential "Santa Claus rally" in the markets, a phenomenon where institutional players might push stock prices higher towards the fiscal year-end. Vijay Bhambwani, CEO of Bsplindia.com, noted that the current market volatility is likely to increase as more traders enter the futures and options segment.

Despite the selling pressure from FPIs, the major indices, Nifty 50 and BSE Sensex, managed to extend their gains into a second day, propelled by strong performances from top companies including Reliance Industries and Infosys. By the end of the trading session, the Nifty 50 closed 0.60% higher at 24,276.05, and the Sensex increased by 0.56% to close at 80,248.08.

Investors are advised to monitor market support levels closely, with immediate support for Nifty 50 seen near 24,000.

FPIs, sellers, equities