The foreign institutional investors (FIIs) sold a whopping Rs 113,858 crore worth equity in the Indian stock market in the month of October, contributing hugely to the about 8 per cent decline in benchmark indices from the peak.
Despite the massive FII selling in financials, this sector is resilient since the valuations are fair and every selling is being absorbed by domestic institutional investors (DIIs) and individual investors, particularly high-net-worth individuals (HNIs).
According to market watchers, the FII selling through the exchanges in October is the single-highest absolute selling ever in a month by them.
However, FIIs were buyers in the primary market with an investment of Rs 19,842 crores in October.
Market experts said that the rally in Chinese stocks appears to have tapered off as reflected in the declining trend in Shanghai and Hang Seng indices in recent days.
Global markets will respond to the US presidential elections for a few days, after which fundamentals like US GDP growth, inflation and rate cut by the Fed will influence market moves, said experts.
Meanwhile, in a new monthly record, DIIs infused more than Rs 1 lakh crore in Indian equities in October, keeping the stock market healthy compared to its global peers. So far, the DII investments have been more than Rs 4.41 lakh crore, with two more months to go, driven by growing retail participation through mutual funds.
Earlier, the highest recorded monthly DII inflows were registered in March this year, at about Rs 56,356 crore. According to market experts, DII inflows are a result of SIP contributions alongside insurance and retirement fund flows.
DIIs have been a strong buyer absorbing the selling and mitigating the fall. Samvat 2080 saw Indian equities soaring to new highs with Nifty-50 surpassing the milestone of 26,000 to make a new high of 26,277 in September. Despite recent correction from the top, Nifty has given a return of 26 per cent in Samvat 2080.
Sensex gains 694 points ahead of closely-fought US election
The Indian stock market closed in green on Tuesday as investors set their eyes on the closely-contested US presidential election. At the end of trading, buying was seen in all sectors, except FMCG and media.
Ola Electric’s share hits all-time low of Rs 74 ahead of Q2 results
Bhavish Aggarwal-run Ola Electric Mobility saw its share nosedive further to a fresh low of Rs 74.18 apiece on Tuesday after touching Rs 73.84 during the intra-day trading -- losing almost 8.5 per cent in a day.
Swiggy’s high valuation, ongoing losses raise concerns about long-term sustainability: Angel One
Swiggy’s Rs 11,327 crore initial public offering (IPO) faces several risks and challenges that potential investors should consider, leading online brokerage Angel One has said, adding that the company’s high valuation, coupled with its ongoing losses, raises concerns about its long-term sustainability.
E-commerce platforms see over Rs 1 lakh crore worth sales in India festive season
As private consumption surges in smaller cities and towns in India which is driven by high pent-up demand and premiumisation wave, the e-commerce platforms registered more than Rs 1 lakh crore in gross merchandise value (GMV) in the month-long festive season.
Indian stock market opens flat, all eyes on US election
The Indian stock market opened flat on Tuesday as buying was seen in metal, auto IT, PSU bank and pharma sectors during the early trade, as investors turned their attention to the closely-fought US election.
Sensex crashes 1300 pts, Nifty at four-month low
The Indian stock market was trading deep in the red on Monday's mid-session as heavy selling was seen in the auto, metal, realty and energy stocks.
Muhurat trading signifies positive investor sentiment for Indian markets
According to Vikas Gupta, smallcase Manager and CEO at Omniscience Capital, it is likely that the current correction in the markets is likely to start correcting itself in the next few weeks.
Indian market opens flat on Diwali, L&T and Sun Pharma top losers
On the auspicious occasion of Diwali, the Indian stock market opened flat on Thursday as selling was seen in auto, IT, PSU bank and FMCG sectors in early trade.