After a brief respite, foreign investors resumed selling on Thursday, offloading domestic equities worth a staggering Rs 11,756 crore. This marked an abrupt end to three consecutive days of buying and sparked chaos on Dalal Street.
FIIs reverse 3-day buying streak
Foreign institutional investors (FIIs) had recently broken a 38-session selloff streak by purchasing Rs 11,100 crore worth of domestic equities over three trading days.
- Monday: FIIs bought shares worth Rs 9,947.55 crore.
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- Tuesday: Additional purchases of Rs 1,157.70 crore.
- Wednesday: Net buying activity slowed significantly to just Rs 7.7 crore.
The short-lived buying spree had sparked hopes of a sustained recovery, following months of outflows tied to the “Sell India, Buy China” trend.
Net outflows continue for 2nd straight month -November
Despite the brief buying activity, foreign portfolio investors (FPIs) remain net sellers for November, having divested Rs 13,079 crore in equities so far.
This extends their negative trend from October, when FPIs offloaded shares worth Rs 94,017 crore. On a year-to-date basis, FIIs have sold Rs 6,486 crore worth of domestic stocks, reflecting overall bearish sentiment.
Month-on-Month FPI trends in 2024
FPI activity has been highly volatile throughout the year:
- September: Rs 57,724 crore net inflows, the highest monthly buying figure of 2023.
- August: Net purchases of Rs 7,322 crore, down from Rs 32,359 crore in July.
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- June: Rs 26,565 crore net buying, rebounding from April and May, which saw net outflows of Rs 8,671 crore and Rs 25,586 crore, respectively.
- February and March: Modest net inflows of Rs 1,539 crore and Rs 35,098 crore, respectively.
- January: The year started on a negative note, with FPIs selling Rs 25,744 crore worth of equities.
Market Impact and Outlook
The abrupt return to heavy selling underscores the fragile investor sentiment driven by global economic uncertainties, including rising US bond yields, a strong dollar, and concerns over China’s recovery pace.
Analysts believe that while sporadic buying spurts may occur, consistent inflows will likely depend on clarity over global interest rates and domestic policy stability.
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