FPIs Continue as Net Sellers for 26th Successive Session

The ongoing trend of foreign portfolio investors (FPIs) offloading Indian equities has stretched to 26 consecutive sessions, a situation that has created a notable impact on the market dynamics. Domestic institutional investors (DIIs) have capitalized on this trend, emerging as net buyers amid significant foreign outflows.

Recent Activity in the Market

In the latest session, FPIs sold equities amounting to approximately Rs 4,329.8 crore, according to provisional data shared by the National Stock Exchange. In contrast, domestic institutional investors stepped in to purchase stocks valued at Rs 2,936.1 crore. This reflects a broader trend observed over the last five trading sessions, during which FPIs disposed of stocks worth Rs 15,517.4 crore, while DIIs have net bought equities worth Rs 11,321.8 crore.

Overall Market Statistics for October

The month of October was particularly challenging for FPIs, who divested stocks valued at around Rs 1.14 lakh crore. In a contrasting move, DIIs absorbed approximately Rs 1.07 lakh crore worth of Indian equities during the same period. This shift stands in stark contrast to September, when FPIs were net buyers, acquiring stocks worth Rs 15,423.4 crore, while DIIs purchased equities totaling Rs 31,860.3 crore.

Current Market Sentiment

So far in 2024, foreign institutions have been net buyers of Indian equities, totaling around Rs 2,249 crore, as noted in the data from the National Securities Depository Ltd. However, the prevailing market sentiment remains notably pessimistic, leading to declines across all sector indices. Ameya Ranadive, a chartered market technician at StoxBox, has indicated that the most immediate support level for the Nifty 50 index is around 23,900. A break below this level could further amplify the market's current weaknesses.

Performance of Benchmark Indices

The benchmark stock indices, including the NSE Nifty 50 and the BSE Sensex, concluded at their lowest points in over a month, primarily driven by declines in major stocks such as Reliance Industries Ltd. and HDFC Bank Ltd.. In this session, the Nifty 50 fell by 309.00 points, or 1.27%, closing at 23,995.35, while the Sensex dropped by 941.88 points, or 1.18%, to settle at 78,782.24. This slump has raised concerns among investors, although experts suggest it may not be a significant cause for alarm, attributing it to ongoing global economic headwinds.

FPIs, Investors, Market