Foreign institutional investors (FIIs) have emerged as net sellers in August, offloading ₹2,373 crore in Indian equities on the last day of the month, as domestic benchmark indices settled lower tracking weak global cues. Foreign inflows hit a four-month low of ₹122.52 billion in August. The domestic institutional investors (DIIs) are net buyers in August and invested ₹4,383 crore during the session.
As per the NSE data, FIIs cumulatively bought ₹47,666 crore of Indian equities, while they sold ₹50,639.21 crore — resulting in an outflow of ₹2,973.10 crore. Meanwhile, DIIs infused ₹16,236.73 crore and offloaded ₹11,853.97 crore, registering an inflow of ₹4,382.76 crore.
Meanwhile, frontline indices Sensex and Nifty ended in the negative territory lower on the month’s last trading session, snapping a five-month winning streak, weighed down by the continued drop in financials and consumer stocks and as foreign investments moderated.
Sensex ended with a loss of 256 points, or 0.39 per cent, at 64,831.41 while the Nifty ended the day at 19,253.80, down 94 points, or 0.48 per cent. The domestically focused small-caps and mid-caps continued to outperform the blue-chips, driven by strong retail inflows.
The BSE Midcap index closed 0.02 per cent lower at 31,200.60 after hitting its fresh record high of 31,352.15 during the session. The Smallcap index ended with a gain of 0.79 per cent at 37,143.67 after hitting its record high of 37,197.2 during the session.
The Nifty has lost 2.53 per cent in August after gaining 14.16 per cent from March to July, while the Sensex dropped 2.55 per cent in August after rising 12.83 per cent in the previous five months.
Where is Nifty headed?
“The Nifty faced persistent resistance at the 21-day Exponential Moving Average (21EMA), which resulted in a market correction. Two consecutive unsuccessful attempts to surpass the critical 21EMA level led to an increase in selling pressure,” said Nifty from Rupak De, Senior Technical Analyst at LKP Securities.
‘’The overall sentiment remains pessimistic, with the likelihood of any upward rallies being met with selling activity. On the downside, the initial support level is placed at 19,200. If the index falls below the 19,200 level, it could potentially move towards the 19,000 mark. The sell on rise strategy is expected to favour the traders until the Nifty convincingly surpasses the 19,500 level,” added De.
Download The Mint News App to get Daily Market Updates.
Updated: 31 Aug 2023, 08:17 PM IST