Domestic investors infuse Rs 33,460 crore this week, FIIs remain sellers

Foreign institutional investors sold Rs 34,970 crore of Indian equities last week, extending their selling streak, while domestic institutions bought Rs 33,460 crore. Weak global cues, elevated crude prices, bond yields and rupee depreciation weighed on markets, with Nifty falling 3.1 per cent

Mumbai: Foreign institutional investors (FIIs) remained net sellers in Indian equities in the past week and offloaded shares worth Rs 34,970 crore, while domestic institutional investors (DIIs) provided support with purchases of Rs 33,460 crore, according to the provisional exchange.

On a month-to-date basis, FIIs pulled out Rs 44,010 crore from Indian markets in September, while DIIs invested Rs 76,030 crore during the month.

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Moreover, FIIs remained net sellers in the market for the 15th consecutive month. “Benchmark indices continued to face selling pressure amid a challenging global backdrop, with elevated US bond yields, firm Brent crude prices and sustained FII outflows weighing on sentiment,” said Pabitro Mukherjee, deputy vice-president-research at Bajaj Broking.

Uncertainty over the prospects of a peace deal involving Iran and a depreciating rupee also added to investor caution, Mukherjee said.

In addition, Nifty extended its losing streak to eight consecutive weeks which shows continued risk aversion among investors. The headline index fell for all four trading sessions during the week and ended 3.1 per cent lower at 22,422 on Thursday.

Similarly, Bank Nifty also declined 2 per cent during the week, while Nifty Midcap and Nifty Smallcap indices fell 3.6 per cent and 3.4 per cent, respectively. Elevated crude oil prices have raised concerns over inflation and the domestic macroeconomic outlook, while higher global bond yields have constrained risk appetite, according to market experts.

Apart from that, the Reserve Bank of India’s Monetary Policy Committee is scheduled to meet from October 5 to 7, followed by the 57th GST Council meeting on October 7. The US Federal Reserve’s minutes from its September meeting are also due on October 7. The second-quarter FY27 earnings season also scheduled to begin on October 8.