Foreign Investment Fails to Boost Indian Equities in August
Despite over ₹30,000 crore in foreign investments, Indian equities remain stagnant as profit booking weighs heavily.
Sensex and Nifty 50 close lower despite foreign buying.
Metal stocks outperform driven by global demand expectations.
Investors await India's GDP data for market direction.
Indian equities ended the week slightly lower, continuing a range-bound trend throughout August, even with foreign investments exceeding ₹30,000 crore. The Sensex fell by 0.36% to close at 77,264.51, while the Nifty 50 declined by 0.31% to settle at 24,175.65. Strong gains in technology stocks on Friday helped the indices recover from a two-session losing streak, although heavy domestic profit booking and a significant number of primary issuances hindered market momentum.
Market analysts attribute the current stalemate to large-scale domestic profit booking that offsets foreign inflows. Additionally, high US Treasury yields and volatile crude oil prices have made institutional buyers cautious. Despite the overall market's cautious movement, metal stocks surged nearly 3% due to expectations of stronger global commodity demand, driven by sectors like green energy and electric vehicles. Investors are now looking forward to India's GDP data, expected to provide insights into future market directions.
