FPIs Start December as Net Sellers

Foreign portfolio investors (FPIs) have kicked off December on a bearish note, continuing a trend where they have been net sellers of Indian equities. This follows their notable selling activity throughout the previous months, particularly November.

Foreign Institutions Sell Equities

As of December 2, 2024, FPIs have offloaded stocks worth a total of Rs 238.3 crore in one day. This comes on the heels of a significant trend: FPIs have been net sellers, cumulatively selling stocks valued at Rs 16,009 crore so far in 2024, according to the latest data from the National Securities Depository Ltd.

Domestic Institutional Investors Step In

Contrarily, domestic institutional investors (DIIs) have been in a buying spree. On the same day, they purchased shares worth Rs 3,588.7 crore, marking their fourth consecutive session of strong purchasing activity.

Recent Market Performance

The broader market has shown mixed signals. In November, FPIs sold a staggering Rs 45,974.1 crore worth of stocks, whereas DIIs acquired shares worth Rs 44,483.9 crore. Furthermore, October was marked by FPIs offloading equities valued at Rs 1.14 lakh crore while DIIs picked up Rs 1.07 lakh crore in shares.

Trends and Predictions

Analysts are noting increased market participation among traders, especially with 45 new entrants into the futures and options segments. Vijay Bhambwani, CEO of Bsplindia.com, predicts heightened volatility as retail traders are likely to increase their exposure in the coming months.

Additionally, there is speculation about a potential Santa Claus rally, a phenomenon where institutional investors may push up stock prices towards the end of the fiscal year to enhance net asset values. Historically, this time of year has been bullish for markets.

Market Indices Reaction

Despite the net selling by FPIs, key market indices such as the NSE Nifty 50 and BSE Sensex showed resilience, closing higher. The Nifty 50 ended the day up by 144.95 points (0.60%), finishing at 24,276.05, while the Sensex rose by 445.29 points (0.56%), concluding at 80,248.08.

As we look forward to the rest of the month, the immediate support for the Nifty 50 is seen at around 24,000.

FPIs, Sellers, Investors