The outflow of foreign funds is one of the reasons why the markets are down. On Thursday, Foreign Institutional Investors (FIIs) made the biggest selloff of the current week, withdrawing over Rs 1,000. 1,417 crore from Indian Equity. However, the outflow was offset by domestic institutional investors (DIIs), who continued to buy. Currently, the Sensex is close to the 59,600 level, and the Nifty 50 is marginally above 17,510.
According to NSE data, FII’s buying value Rs 6,791.35 crore on Thursday Indian equitywhile it sold heavily 8,208.59 crores. this resulted in the least withdrawal Total in 1,417.24 crore days.
During this, dii was shopping for 7,010.44 crore in domestic equity, while they sold to some extent 5,424.38 crores. Therefore, they were net buyers 1,586.06 crores on the day. Unlike FIIs, DIIs have made their biggest purchases of the week.
Sensex and Nifty 50 continued to decline for the fifth consecutive day. Worries of more rate hikes grow after central bank signals need to reduce agenda inflation in 2023-24 as this economic indicator still remains high and poses the biggest threat to the macroeconomic outlook ahead.
On Thursday, the Sensex ended 139.18 points down by 0.23%, while the Nifty 50 closed at 17,511.25, down 43.05 points or 0.25%.
But from February 17, 2023 onwards the market is in deep red. In 5 trading sessions, the Sensex has fallen 1,713.71 points or 2.79% and smelly 50 has fallen 524.6 points or 2.91%.
However, this is not the case with FII and DII. So far in the week, investors of both the categories have shown a mixed attitude.
FII started the week as a mere sell 158.95 cr on 20 Feb, but did a U-turn to become a buyer on 21 Feb 525.80 crore in equity. However, when the Sensex and Nifty 50 fell by over 1.5% each on Wednesday, FIIs almost sold off. 579.82 crores. Therefore, the latest reading would be a second selloff in a row.
DIIs, on the other hand, have been net buyers this week. they pumped 86.23 crore on 20 February, taking an opposite route as against FIIs, and emerged as sellers with outflows of 235.23 crore on 21 February. But they came back to buy on February 22 with an investment of 371.56 cr.
Ajit Mishra, VP Technical Research, Religare Broking further said, “The pace of decline was gradual till Tuesday but the sharp cut in the US markets has completely changed the tone. Signs are pointing towards continuation of the same tone.” The next major support is around the 17250-17400 area. In case of any bounce, the 17700-17900 area will act as a strong resistance. Traders should continue with the “sell on rise” approach and take limit positions.
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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