Foreign institutional investors (FIIs) emerged as net sellers in the Indian stock market on Friday after five consecutive days of buying. Domestic institutional investors (DIIs) followed a similar pattern. However, selling by FIIs was higher than that by DIIs. Both Sensex and Nifty 50 snapped their three-day winning streak and fell half a per cent.
According to NSE data, FII bought Rs 4,809.72 crore Indian stock but sold 5,434.33 crore — resulting in an outflow of 624.61 crores on Friday.
Meanwhile, DII purchases 5,540.77 crores but sold out 5,626.06 crore in Indian equity in view of the outflow of — 85.29 crores during the day.
In the last session, FII made a cumulative purchase of 1,570.62 crores. while DII purchases 1,577.27 crore in domestic equity.
FIIs have remained net buyers for the last five consecutive days.
According to Stock Edge data, which tracks the daily performance of FIIs and DIIs in the Indian market, FII inflows came 6,088.48 crore between February 10 and February 16.
The current week saw the highest ever inflows from FIIs.
On the other hand, DIIs have remained net buyers for the last four consecutive days. Except for Friday, DIIs have invested money throughout the current week. According to the data, the flow of DII between February 13-16 2,820.39 crores.
Indian markets ended the latest week on a bearish note. The Sensex closed at 61,002.57, down 316.94 points or 0.52%. Whereas on Friday the Nifty 50 closed down 91.65 points or 0.51% at 17,944.20.
Overall, the Sensex is up about one per cent for the week while the Nifty 50 is up over 0.6%.
Going forward, Dr Joseph Thomas, Head of Research, Emkay Wealth Management, said, “Equity markets continue to test support levels influenced by developments overseas, primarily the US, and led by data points on inflation. Inflation Points persistence of .For status quo on policy stance, and this is affecting the markets due to assessment of growth prospects which is not entirely favourable. The same factors are likely to guide market movements in coming weeks as well .
According to Mitul Shah – Head of Research, Reliance Securities, the overall results so far have shown 19%/11%/5% growth in Revenue/EBITDA/PAT for a sample of NSE 500 companies. Profitability has been under pressure due to higher raw material costs on a year-on-year basis. However, RM cost has come down on a quarter-on-quarter basis, which has improved gross margin. PAT growth has been impacted due to higher finance cost on the back of increase in interest rates.
Besides, Shah highlighted after declining for two months, India’s retail inflation rose to 6.52% in January, well above the RBI’s tolerance band of 2-6%. The jump was expected due to an adverse base effect from last year. But January’s growth of 6.52% compared to 5.72% in December was much higher than expected, partly driven by rising food prices. Food inflation stood at 5.94% versus 4.2% in December. On the other hand, WPI fell to a 24-month low of 4.73% YoY in January versus 4.95% in the previous month. This indicates an easing of supply-side pressures and will help the CPI cool down in the coming months.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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