Market Recap: FIIs Sell ₹10,927 Crore in Indian Equities, While DIIs Infuse ₹6,361 Crore - According to NSE Data

 

Foreign institutional investors (FIIs) extended their selling streak on Tuesday, November 21, amidst subdued global cues. FIIs collectively offloaded ₹10,927 crore while making purchases totaling over ₹10,471.83 crore, resulting in a net outflow of ₹455 crore for the day. Concurrently, domestic institutional investors (DIIs) infused ₹5,640 crore and divested ₹6,361 crore, recording a net inflow of ₹721 crore. This data, sourced from the National Stock Exchange website on November 21, indicates an ongoing trend in market activities.

 

In comparison, the preceding day saw FIIs selling ₹9,421 crore and purchasing ₹8,776 crore, resulting in a net outflow of ₹645 crore. On the same day, DIIs invested ₹6,646 crore and divested ₹6,369 crore, registering a net inflow of ₹77 crore.

 

The ongoing divestment by FIIs in Indian equities, which commenced in October, can be attributed to several factors, including historically high US bond yields, a strengthening dollar index, and geopolitical uncertainties arising from the Israel-Hamas conflict. These factors have collectively impacted market sentiment negatively. Despite concerns surrounding elevated interest rates and a potential global economic slowdown, foreign inflows have shown signs of improvement in November, attributed to lower US bond yields and a decline in crude oil prices.

 

Analysts suggest that the Indian market, despite facing various challenges, has displayed noteworthy resilience. Foreign investors appear cautious about selling their investments, fearing a missed opportunity for potential gains in the Indian market. This cautious approach might deter Foreign Institutional Investors (FIIs) from significant selling activities in the days ahead.

 

"Today, the market showed positive momentum, with a focus on the minutes of the latest Fed meeting. Declining inflation and recent cooling job data in the US set the stage for a dovish comment from the Fed. The drop in bond yields and the dollar index indicates growing speculation about a potential peak in the interest rate cycle. This speculation is likely to attract funds to emerging markets. The broad market gained, led by consumer durables and realty, thanks to a strong rebound in festive demand

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