Foreign institutional investors (FIIs) continued their selling streak as Indian markets extended losses for the third consecutive session on August 3 against weak global cues. The domestic institutional investors (DIIs) turned net buyers and invested ₹1,729 crore during Thursday’s session.
As per the NSE data, FIIs cumulatively bought ₹11,379.30 crore of Indian equities, while they sold ₹11,696.76 crore — resulting in an outflow of ₹317.46 crore. Meanwhile, DIIs infused ₹9.582.30 crore and offloaded ₹7,853.11 crore, registering an overall inflow of ₹1,729.19 crore.
FIIs have been net sellers of domestic equities for several days in a row, while too DIIs showed a renewed interest in buying Indian stocks for few sessions.
Domestic equity indices Sensex and Nifty extended losses for the third consecutive session on August 3, amid weak global cues as sharp gains in the US bonds yields and dollar weighed on stock market sentiment.
The decline has been worse since yesterday, triggered by a sell-off in global markets after Fitch downgraded the US credit rating from AAA to AA+. The downgrade was due to concerns about the US government’s rising debt levels and the potential for a recession.
Sensex opened 232 points lower at 65,550.82 against the previous close of 65,782.78. The index cracked 820 points to hit the intraday low of 64,963.08 before closing the day with a loss of 542 points, or 0.82 per cent, at 65,240.68. The Nifty ended the day at 19,381.65, down 145 points, or 0.74 per cent. India’s 10-year bond yield rose about half a per cent to 7.189.
ICICI Bank ended as the top drag on the Sensex index, followed by HDFC Bank, TCS and Reliance Industries. Mid and smallcaps outperformed the benchmark index, ending in the green. The BSE Midcap index ended 0.14 per cent higher while the Smallcap index rose 0.23 per cent.
Commenting on today’s market performance, Ajit Mishra, SVP – Technical Research, Religare Broking said, ‘’Markets extended the decline on the weekly expiry day and lost over half a percent. After the flat start, Nifty traded in a narrow range but selling pressure in heavyweights pushed the index gradually lower.”
‘’However, a rebound in the final hour, similar to Wednesday’s session, trimmed losses and it finally closed at 19,381.65 levels. Most sectors traded in sync and ended lower wherein realty, banking and financials were among the top losers. On the other hand, the broader indices witnessed some respite and ended flat,” added Mishra.
Where are markets headed?
‘’The recent drift in the global indices is putting pressure now and we expect the negative tone to continue. On the index front, the breakdown of the trend line support further added to the negativity but the existence of support at 19300 capped the downside. We reiterate our view to keep a check on positions and focus more on risk management,” said the analyst.
‘’Going forward, 19,300 may act as crucial support, while, on the higher end resistance is seen at 19,500/19,650,” said Rupak De, Senior Technical analyst at LKP Securities.
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Updated: 03 Aug 2023, 07:23 PM IST