FPIs Continue to Sell Indian Equities: Offloading Rs 3,228 Crore

Foreign portfolio investors (FPIs) have continued their sell-off trend, offloading stocks worth approximately Rs 3,228.1 crore. This marks the 21st consecutive session of net selling by these overseas investors, according to provisional data from the National Stock Exchange.

Impact on Domestic Institutional Investors

In contrast to the FPIs, domestic institutional investors (DIIs) remain active buyers in the market, purchasing stocks worth Rs 1,400.9 crore during the same period. Over the past five sessions, FPIs have sold equities valued at Rs 20,990.5 crore, while DIIs have managed to buy shares totaling Rs 21,089.6 crore. This trend underscores the contrasting strategies of foreign and domestic investors.

October Overview

In October alone, FPIs have offloaded stocks worth a staggering Rs 1.04 lakh crore. Meanwhile, DIIs have accumulated shares valued at Rs 98,491.7 crore. This continued selling from FPIs comes after a previous month, September, where FPIs sold shares valued at Rs 15,423 crore, while DIIs bought shares worth Rs 31,860 crore. Interestingly, FPIs have been net buyers of Indian equities to the tune of Rs 11,792 crore throughout the year 2024, as per data from the National Securities Depository Ltd.

Market Reaction

The Indian stock market has been witnessing fluctuations in response to these investment trends. Following a five-day losing streak, the NSE Nifty 50 and BSE Sensex managed to break this pattern, with the Nifty 50 climbing 158.35 points or 0.65% to settle at 24,339.15, while the Sensex rose by 602.75 points or 0.76% to close at 80,005.04. During the trading session, both indices saw significant intraday gains, with the Nifty 50 rising as high as 1.29% and Sensex climbing 1.43% at certain moments.

Sector Performance

According to the fortnightly sector-wise foreign flow report from Emkay Global Financial Services Ltd., sectors such as commercial and professional services, telecommunication, and consumer services have attracted the highest inflows from FPIs in 2024. However, the financial services and energy sectors have seen the largest outflows this year.

Looking Ahead

As we move forward, analysts will be closely watching the market dynamics, especially the resistance levels for the Nifty 50, which are expected in the range of 24,525 to 24,600. The ongoing trend of foreign selling and domestic buying will likely shape the market sentiment in the coming days.

FPIs, Selling, Investors