FIIs remain net seller for 10th consecutive month in April, domestic investors provide cushion
New Delhi: Foreign institutional investors (FIIs) continued to remain net seller for the 10th consecutive month in April, as they sold Rs 70,100 crore worth Indian equities last month, according to the provisional exchange data.
On the other hand, domestic institutional investors (DIIs) continue to provide support to the market, emerging as net buyer during last month, with investments totalling Rs 51,000 crore.
Last week, FIIs sold net about Rs 13,000 crore while DIIs infused around Rs 11,500 crore during the same period.
“A weaker rupee and an elevated oil prices have led to selling by the FIIs, they have remained seller in all the four months of the current calendar year offloading Rs 2,40,750 crore, as per provisional exchange data,” said Pabitro Mukherjee, Associate Vice President–Research, Bajaj Broking.
DIIs are absorbing a significant portion of the selling pressure and limiting deeper market declines.
Meanwhile, crude oil prices surged during last week following confirmation from the White House that President Donald Trump had asked officials to prepare for a prolonged blockade of Iranian ports.
Such a move points to sustained supply disruptions, particularly through the strategically critical Strait of Hormuz. Elevated energy prices have reignited inflation concerns. It has lead to selling by the FIIs in all the four trading sessions during last week, said market watchers.
The Indian equity benchmarks closed in the red this week, as persistent selling from the foreign institutional investors (FIIs) and higher crude prices weighed on market sentiment.
Nifty lost 0.73 per cent during the week and dipped 0.74 per cent on the last trading day to reach 23,997. At close, the Sensex was down 582 points or 0.75 percent at 76,913. It dropped 0.97 per cent during the week.
Going ahead, institutional activity is likely to be primarily influenced by global news developments, they added.
In particular, progress or setbacks in US–Iran negotiations will remain a critical factor to monitor, given their significant implications for geopolitical stability and their potential to drive volatility in the crude oil prices.
“The outcome of the state assembly election on Monday will also have impact on the Indian equity market in the coming week,” said analysts.
