FIIs became net sellers in Indian stocks for 16 consecutive days. What to expect next?

Foreign Institutional Investors (FIIs) continued selling in Indian stocks for 16 consecutive days. 23,800 crores. Sales are over so far in January 17,400 crore in equity. According to NSDL data, foreign portfolio investors (FPI) outflows have also crossed 15,000 crore mark in domestic equity. The selling trend by foreign investors is likely to continue further.

This is an important trend, said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services Market This is the month of continuous selling by FIIs. FII sold for the 16th consecutive trading session due to which the total selling figure 23,887 crores.

Selling around FII on Friday Rs 2,422.39 crore Indian stock, While they made the biggest ever sale in the current month on January 11, where the outflow stood 3,208.15 crores. was on the way out 1,662.63 crore on 12 January, 2,109.34 crore on 10 January, and 203.13 crores on 9th January. Overall, in the week, the outflow was collected 9,605.64 crore in Indian equities.

Further, Santosh Meena, Head of Research, Swastika Investmart said, “FII selling, where they sold approx 10,000 crore in the Indian equity markets, was the highlight of the week. In early 2023, we are already seeing some improvement in the remarkable outperformance of the Indian equity market.”

The last time FIIs were net buyers was on December 22 last year. He has been a net seller since December 23, 2022 till date.

Vijayakumar said, “FIIs are selling in India and investing in cheap markets like China, Hong Kong and South Korea where valuations are very low. FIIs were selling in China in 2022. This trend is long China and short has changed in India.

Meanwhile, according to NSDL, FPI outflows in Indian equities are approx. 15,068 crore so far in January. FPIs have been net sellers in other market instruments as well.

According to Vijayakumar, this process may continue for a few more days. Since DIIs and retail investors are buyers and are willing to buy dips, FII selling is unlikely to lead to a sharp correction in the market even if the market looks weak in the near term. CPI inflation falling to 5.72% in December and IIP rising to 7.1% in November are positive macros which may provide fundamental support to the bulls.

The Swastika expert said, “Indian markets are trading lower month-on-month with a significant FII outflow, while most emerging markets have bounced back with net FII inflows in the first few days of 2023. is the key variable determining the future course of the market. However, we do not see any sudden fall as DIIs are working to keep the market in check.”

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.

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