A reverse trend is being seen in foreign institutional investors (FIIs). After strong buying in May, FIIs kickstarted June month with a selling bias and extended their outflow to nearly ₹659 crore on Friday. On the contrary, domestic institutional investors (DIIs) have become net buyers in the first two days of the current month. An inflow of nearly ₹582 crore has been registered from DIIs on June 2nd.
As per the NSE data, FIIs buying value was at ₹10,393.93 crore and selling value at ₹11,052.81 crore — registering an outflow of ₹658.88 crore in Indian equities on Friday.
DIIs purchased equities worth ₹6,951.54 crore, on the other hand, they offloaded stocks to the tune of ₹6,369.69 crore, recording an inflow of ₹581.85 crore.
Sensex closed at 62,547.11, up by 118.57 points or 0.19%. Nifty 50 jumped by 46.35 points or 0.25% to end at 18,534.10. Banking stocks saw gaining momentum after facing selling pressure in the previous two trading sessions. Auto stocks were in focus as monthly sales figures came in strong, while metal stocks outperformed. BSE Midcap touched an all-time high, while smallcap stocks extended their winning streak.
Talking about the latest market performance, Ajit Mishra, SVP – Technical Research, at Religare Broking said, “Markets remained range bound for yet another session and ended marginally higher. Initially, upbeat global cues triggered a gap-up start in Nifty but profit-taking pared all the gains in no time. It rebounded again as the day progressed but couldn’t surpass the day’s high and finally settled at 18,534.10 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein realty, metal, and auto-posted decent gains. The broader indices maintained their positive tone and gained nearly half a percent each.”
From June 1-2nd, FIIs sold ₹729.95 crore in Indian equities, while DIIs held net buyers’ tag with an inflow of ₹1,070.78 crore.
During May month, FIIs made their biggest monthly buying of 2023 as of now, to ₹27,856.48 crore. However, DIIs were net sellers with an outflow of ₹3,306.35 crore, as per Stock Edge data.
Going ahead, Mishra said, “Mixed global cues combined with a lack of decisiveness in the banking pack are causing uncertainty. However, rotational buying in other sectors and outperformance of the broader indices are helping the traders to put on a brave face. Amid all, we recommend maintaining a stock-specific approach and waiting for clarity.”
Key triggers for the Indian market ahead, as per Mitul Shah – Head of Research at Reliance Securities, are — India’s GDP growth accelerated in 4QFY23 to 6.1% YoY beating estimates of 5.1%. The full-year FY23 GDP growth also beat estimates coming in at 7.2% (vs est 7.0%). The government also met the fiscal deficit target (6.4% of GDP) in FY23 aided by buoyant tax receipts and some fiscal headroom from lower payments. The growth in eight core infrastructure industries moderated to 3.5% YoY in April after hitting a five-month low of 3.6% YoY in March due to a decline in the output of crude oil, natural gas, refinery products, and electricity. The RBI monetary policy is due next week. The monsoon is also expected to arrive in Kerala over the weekend.
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Updated: 02 Jun 2023, 06:15 PM IST