FPI offload Indian stocks worth Rs 7702 Cr in year’s biggest single day sell off

On October 26, foreign institutional investors (FIIs) continued their selling spree in the Indian stock market, while domestic institutional investors (DIIs) emerged as net buyers. This trend occurred on the day of the monthly Futures and Options (F&O) expiry, with the domestic markets settling lower for the sixth day in a row.

FIIs and DIIs Activity

• FIIs: According to data from the National Stock Exchange (NSE), FIIs collectively bought ₹10,239.05 crore worth of Indian equities, but they also sold ₹17,941.58 crore. This resulted in a net outflow of ₹7,702.53 crore. FIIs have been selling Indian equities due to factors like rising US bond yields and the strength of the dollar index, which have negatively impacted market sentiment.

• DIIs: In contrast, DIIs were net buyers on this day, infusing ₹13,600.71 crore into Indian stocks and offloading ₹7,042.26 crore. This translated to a net inflow of ₹6,558.45 crore.

Market Conditions

• Global Cues: Weak global cues played a significant role in the market’s performance. Investors turned away from local equities, leading to a sell-off, as benchmark Nifty closed below the 19,000 mark.

• Sector Impact: Frontline banking, automobile, and IT stocks experienced a sell-off as investors were concerned about various factors, including the ongoing West Asia conflict, economic uncertainty, and worries about potential interest rate hikes.

Expert Opinion

• Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, commented on the situation, stating that investors continued to be bearish for the sixth consecutive session.
• The factors contributing to this sentiment include weak global cues, concerns about the West Asia conflict, economic uncertainty, and worries about interest rate hikes.

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