Foreign institutional investors (FIIs) halt their two-consecutive days selling bias and made strong buying of nearly ₹1,678 crore in Indian equities on Tuesday after the rate hike possibility was minimized further following the country’s 25-month low CPI print. On the other hand, domestic institutional investors (DIIs) turned as net sellers with an outflow of more than ₹203 crore. Nevertheless, overall, markets saw an eventful trading session with Sensex and Nifty 50 just a couple of points away from their lifetime highs.
As per NSE data, FIIs buying value was at ₹12,967.79 crore on Tuesday, while they sold ₹11,290.19 crore worth of equities — resulting in an inflow of ₹1,677.60 crore.
Meanwhile, DIIs offloaded more to the tune of ₹6,957.27 crore, than compared to buying of ₹6,753.95 crore in Indian stocks. Hence, an outflow of ₹203.32 crore was recorded.
On June 13th, Sensex ended at 63,143.16, surging by 418.45 points or 0.67%. While Nifty 50 closed at 18,716.15, soaring by 114.65 points or 0.62%. Midcap and smallcap stocks continued to outperform to hit new historic highs. All sectoral indices were in the green with consumer durables being the top gainers.
Talking about the current market’s performance, Ajit Mishra, SVP – of Technical Research, at Religare Broking said, “Markets edged higher and gained over half a percent, tracking upbeat global cues. After a firm start, the Nifty oscillated in a range while maintaining positive bias and finally settled at 18,716.15 levels.”
Also, Mishra said, “All sectors, barring auto, contributed to the move wherein realty, FMCG, and pharma were the top gainers. Besides, the continued outperformance of the broader indices kept the traders busy.”
In the previous session, FIIs were net sellers with an outflow of ₹626.62 crore, while DIIs were net buyers with an inflow of ₹1,793.85 crore.
In the trading week that ended on June 9th, both FIIs and DIIs were net buyers with an inflow of ₹970.73 crore and ₹1939.76 crore respectively.
For Wednesday’s trade, Mishra said, “Participants are taking comfort from recovery in the US markets and prevailing buoyancy in midcap & smallcap space however the key is to hold 18,700 in Nifty for further surge else the move would fizzle out again.”
Hence, he recommends maintaining a positive tone but avoid going overboard citing the possibility of a rise in volatility ahead.
Investors will focus on the WPI inflation data of India, while US inflation and Fed’s rate outcomes later in the week will also dictate the markets mood.
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Updated: 13 Jun 2023, 06:08 PM IST