Foreign institutional investors (FIIs) extended their selling spree on Tuesday, September 5, even as domestic benchmark equity indices Sensex and Nifty settled higher for the third consecutive session today on the back of positive domestic macroeconomic data.
As per the NSE data, FIIs cumulatively bought ₹8,414.44 crore of Indian equities, while they sold ₹10,139.55 crore — resulting in an outflow of ₹1,7 crore. Meanwhile, DIIs infused ₹8,580.69 crore and offloaded ₹7,502.83 crore, registering an inflow of ₹1,077.86 crore.
‘’Good inflows into mutual funds is reflected in the strong buying by DIIs who have been buyers for ₹4,900 crore in the last two trading sessions,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign inflows had moderated to a four-month low of ₹122.52 billion ($1.48 billion) in August. FIIs emerged as net sellers in August on the back of a stronger dollar and high US bond yields. The domestic institutional investors (DIIs) emerged as net buyers in August and extended their buying spree in the first session of September as well.
FIIs broke their buying streak of the last five months and cumulatively sold equities worth ₹20,621 crore in August. DIIs had an offsetting position and bought to the tune of ₹25,017 crore last month.
On Tuesday, the 30-share BSE Sensex ended higher by 152.12 points or 0.23 per cent at 65,780.26 level while the Nifty also closed at 19,574.90 level, up 46.10 points or 0.24 per cent. The benchmark Nifty 50 has added 1.67 per cent in the last three sessions after India’s first-quarter gross domestic product (GDP) grew at 7.8 per cent, the fastest pace in a year.
Domestically focused mid-caps and small-caps outperformed the blue-chips setting new highs. The Nifty Midcap 100 index gained a percent to hit an all-time high, riding past 40,000-mark on Tuesday led by a strong bullish momentum in midcap stocks.
The Nifty Smallcap 100 index has increased by more than 30 per cent, while the Nifty Midcap 100 index has increased by more than 27 per cent so far this year. Both indices have performed much better than the benchmark Nifty, which has increased by 8 per cent during the same time period.
Where are markets headed?
“We expect the broader market participation to continue to outperform and sector rotation is helping Nifty to stay elevated. On the upside we expect the Nifty to target levels of 19,650. In terms of levels, 19,490 – 19,470 shall act as a crucial support and 19,650 – 19,700 shall act as an immediate hurdle,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
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Updated: 05 Sep 2023, 07:33 PM IST