FIIs remained cautious this week as well, though they sold Indian equities worth ₹11,414 crore. Clearly, that signals a broader trend where FIIs are net sellers-bolstering concerns that the global economic scenario continues to whip up uncertainty regarding inflation, rising bond yields, and an unexpectedly strong US dollar. The latent risks emanating from the global growth outlook also make FIIs reduce their exposure to equities and debt markets as they retreat from emerging markets like India.
Domestic Institutional Investors (DIIs) have continued to be avid buyers and registered net purchases of ₹11,036 crore. This sustained buying activity goes to indicate that all is not lost, and the confidence in India’s economic prospects remains unshaken at the global headwinds.
The DIIs have been salvaging the impact of FII outflows, and thereby, proving to be strong support to the market at this point of volatility.
FII Activity Across Market Segments:
1. FII Index Futures: +₹4,755 crore
FIIs had been net buyers in the index futures segment at ₹4,755 crore, which hints at some optimism as they hedge their positions or foresee likely market movements.
2. FII Index Options: -₹92,331 crore
The index options witnessed a sharp outflow of ₹92,331 crore, indicating FIIs are taking risk mitigation measures by reducing exposure towards derivatives amid rising market volatility.
3. FII Equity: -₹2,620 crore
FIIs posted a net sale of ₹2,620 cr in equities as they turn risk-averse toward Indian stocks, mainly due to global market risks and the appreciation of the US dollar.
4. FII Debt: -₹1,325 crore
The debt markets also saw FIIs withdraw ₹1,325 cr. This withdrawal could be due to rising global bond yields and because of the preference for safe havens during times of uncertainty.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
Tomorrow 24th Nov is celebrated as Lachit Diwas!
As stated in Bhagavad Gita :
यज्ज्ञात्वा न पुनर्मोहं एवम्यस्यासि पाण्डव।
In this world, there is nothing so sublime and pure as transcendental knowledge.
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