Foreign Institutional Investors Continue Selling Streak for 10 Weeks
FIIs have sold Indian equities for the tenth consecutive week, raising concerns about market stability amid geopolitical tensions and rising crude prices.
FIIs sold equities worth Rs 26,970 crore this week, a decrease from Rs 89,910 crore the previous week.
Domestic institutional investors (DIIs) have countered this trend, purchasing Rs 1,09,420 crore in the same period.
The Nifty 50 index has faced significant declines, with mid- and small-cap stocks experiencing sharper corrections.
Foreign institutional investors (FIIs) have maintained their selling trend in Indian equities for the tenth consecutive week, as market indices continue to decline amid rising Brent crude prices and ongoing geopolitical uncertainties. The Nifty 50 index recorded a drop across all four trading sessions of the week, reaching an intraweek low of 22,372 before closing at 22,600, reflecting a 2.4% decrease. The Bank Nifty fell by 2.8%, while the Nifty Midcap 100 and Nifty Smallcap 100 saw declines of 5.6% and 7.3%, respectively, indicating a broader market weakness beyond just the large-cap stocks.
During this week, FIIs sold a net total of Rs 26,970 crore in equities, a notable reduction from the previous week’s outflow of Rs 89,910 crore. Interestingly, foreign investors managed to turn net buyers in two of the four trading sessions, hinting at a potential easing of the selling pressure. In contrast, domestic institutional investors (DIIs) remained net buyers for the tenth week in a row, increasing their purchases to Rs 1,09,420 crore, which has helped absorb a significant portion of the foreign outflows.
On a month-to-date basis, FIIs have offloaded equities worth Rs 5,14,660 crore, while DIIs have invested Rs 5,91,100 crore. Despite the robust support from domestic institutions, the Nifty index remains under pressure due to concerns surrounding crude oil prices, inflation, and global monetary policies. Analysts note that the divergence in flows between FIIs and DIIs is significant, with the latter stepping up purchases to cushion the impact of foreign capital exits.
Market analysts are closely monitoring global monetary policies, crude oil prices, and geopolitical developments, which are crucial factors influencing foreign investor sentiment towards Indian equities. Upcoming decisions from the US Federal Reserve and the European Central Bank will be pivotal in shaping market expectations. Analysts also highlight that rising crude prices are exacerbating inflation concerns, which may lead to further scrutiny of equity valuations, particularly in mid- and small-cap segments that have seen sharper corrections.
Looking ahead, the Nifty's recent performance has weakened its technical outlook, with key support levels under pressure. Analysts advise caution, suggesting that a decisive break below the 22,200 support level could trigger another wave of selling. Immediate resistance is noted in the 22,700-22,800 range. Investors are encouraged to monitor key technical indicators and remain vigilant as market dynamics continue to evolve amid fluctuating global conditions.
