FPIs Continue to Sell, Offloading Rs 18,451 Crore in Just Seven Sessions

In a notable shift in market dynamics, foreign institutional investors (FPIs) have maintained a selling trend, offloading stocks valued at Rs 18,451 crore over the last seven trading sessions. This marks a significant period of net selling by overseas investors, reflecting ongoing adjustments in their investment strategies.

Foreign Investors Remain Net Sellers

On Tuesday alone, FPIs sold shares worth Rs 2,454.2 crore, continuing their streak as net sellers for the seventh consecutive session. This persistent selling pressure indicates a cautious approach from foreign investors amid various uncertainties.

In contrast, domestic institutional investors (DIIs) have shown resilience, remaining net buyers for the sixth straight session. On the same day, they acquired stocks amounting to approximately Rs 2,819.3 crore, demonstrating confidence in the local market.

Overall, foreign institutions sold stock valued at Rs 18,451 crore in the past seven sessions, while domestic investors purchased shares worth Rs 17,155 crore during the last six sessions.

Monthly Trends in December

For the month of December so far, FPIs have offloaded a total of Rs 6,744 crore in shares. Meanwhile, DIIs have been active buyers, accumulating shares worth around Rs 18,774.1 crore during the same period. This contrasting trend highlights the differing perspectives and strategies between domestic and foreign investors.

Looking back at November, foreign investors sold shares worth Rs 45,974.1 crore, with DIIs buying equities valued at Rs 44,483.9 crore. In the preceding month of October, FPIs were even more aggressive sellers, shedding equities worth Rs 1.14 lakh crore, whereas domestic investors managed to mop up equities totaling Rs 21,593.34 crore.

Interestingly, data from the National Securities Depository Ltd. indicates that foreign institutions have been net buyers of Rs 5,052 crore worth of Indian equities up until recent trading days in 2024.

Market Performance Analysis

India's major stock indices experienced a downturn on Tuesday, following a brief rise the previous day. The decline was largely attributed to weaker performances from large companies such as Infosys Ltd. and State Bank of India, which pulled the indices lower.

Specifically, the NSE Nifty 50 closed down by 25.80 points, or 0.11%, settling at 23,727.65, while the BSE Sensex dropped by 67.30 points, or 0.1%, finalizing at 78,472.87. Despite the losses, there were moments of gain during the day where the Nifty saw an increase of 0.48% reaching 23,867.65, and the Sensex rose by 0.43%, peaking at 78,877.36.

The ongoing trends in foreign selling and domestic buying illustrate the complexities of the current market environment. Investors are closely monitoring these dynamics as they navigate the shifting landscape of equities and global economic conditions.

FPIs, Selling, Investors