FIIs turn net Sellers as DIIs continue buying; benchmark indices marginally fall

FIIs purchased shares worth a net of 14,623.18 crore rupees for the month up to July 28, while DIIs sold shares worth a net of 3,672.40 crore rupees.

On Friday, the primary equity benchmarks experienced marginal declines, marking their second consecutive day of losses. The prevailing sentiment among investors has been impacted by the decrease in foreign portfolio investor (FPI) inflows and the upward trend of US bond yields. Notably, there was increased demand for FMCG and realty shares, while shares in the IT, banking, and financial sectors saw a downturn. The key gauge, S&P BSE Sensex, fell by 106.62 points or 0.16%, closing at 66,160.20. Meanwhile, the Nifty 50 index also slipped by 13.85 points or 0.07%, settling at 19,646.05.

Major contributors to the decline were Bajaj Finserv (down 1.75%), HDFC Bank (down 1.72%), and TCS (down 1.2%). However, the broader market displayed better performance compared to the headline indices, with the S&P BSE Mid-Cap index rising by 0.55% and the S&P BSE Small-Cap index gaining 0.49%.

The market breadth showed a positive trend, with 1,755 shares advancing and 1,788 shares declining on the BSE. A total of 148 shares remained unchanged. The NSE’s India VIX, a measure of the market’s expected volatility in the short term, dropped by 3.59% to 10.14.

European equities experienced a general decrease in value, while Asian stocks showed a mixed performance. On Friday, the Bank of Japan decided to maintain ultra-low interest rates and announced a less stringent approach towards its yield curve control (YCC) operations, while still aiming to keep yields within its target range. In contrast, the European Central Bank (ECB) raised the key interest rate in the eurozone by 0.25 percentage points to 4.25% on Thursday. ECB President Christine Lagarde stated during a press conference that the bank will remain open-minded about future rate decisions.

Updated: 28 Jul 2023, 06:30 PM IST