Foreign institutional investors (FIIs) continued selling on Friday, October 6, even as domestic equity benchmarks Sensex and Nifty settled higher as crude oil price corrected sharply to $84 per barrel. The domestic institutional investors (DIIs) are net buyers again and invested ₹783.25 crore in Indian stocks today.
As per the NSE data, FIIs cumulatively bought ₹6,727.34 crore of Indian equities, while they sold ₹6,817.63 crore — resulting in an outflow of ₹90.29 crore on Friday. Meanwhile, DIIs infused ₹7,150.57 crore and offloaded ₹6,367.32 crore, registering an inflow of ₹783.25 crore.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained a status quo on repo rates and policy stance, in line with Street estimates. The rate-setting panel unanimously decided to keep the repo rate unchanged at 6.5 per cent on Friday. The central bank also retained its policy stance as the “withdrawal of accommodation” with five out of six MPC members voting in favour of this.
“The risk of higher inflation led the RBI to become more realistic in their policy approach. The central bank maintained a hawkish tone on liquidity management, as they may consider OMO to contain liquidity in the system, which led to India’s 10-year yield inching higher,” said Vinod Nair, Head of Research at Geojit Financial Services.
‘’The market, however, reacted positively, as the status quo on the growth rate and a further drop in oil prices provided near-term support,” added Nair.
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Updated: 06 Oct 2023, 10:10 PM IST