FIIs sold nearly ₹625 cr after 5 consecutive days of buying; DIIs become sellers too

Foreign institutional investors (FIIs) emerged as net sellers in Indian equities on Friday after five consecutive days of buying. Domestic institutional investors (DIIs) followed a similar pattern. However, the selloffs by FIIs were higher than compared of DIIs. Both Sensex and Nifty 50 halted their three-day winning streak and tumbled by half a percent.

As per NSE data, FIIs made a purchase of ₹4,809.72 crore in Indian stocks but sold ₹5,434.33 crore — resulting in an outflow of ₹624.61 crore on Friday.

Meanwhile, DIIs purchased ₹5,540.77 crore but sold ₹5,626.06 crore in Indian equities — taking the outflow to the tune of ₹85.29 crore during the day.

In the previous session, FIIs made a cumulative buying of ₹1,570.62 crore. While DIIs bought ₹1,577.27 crore in domestic equities.

FIIs were net buyers for the past five consecutive days.

As per Stock Edge data which tracks the daily performance of FIIs and DIIs on the Indian market, FIIs inflow came in at ₹6,088.48 crore between February 10th to 16th.

The current week witnessed the most inflow from FIIs year-to-date.

On the other hand, DIIs have been net buyers for the past four consecutive days. Except for Friday, DIIs have pumped in money the entire current week. As per the data, between February 13-16, DIIs inflow stood at ₹2,820.39 crore.

Indian markets ended the latest week on a bearish note. Sensex closed at 61,002.57 lower by 316.94 points or 0.52%. While Nifty 50 finished at 17,944.20 below 91.65 points or 0.51% on Friday.

Overall, in the week, Sensex has climbed by nearly a percent while Nifty 50 has jumped by over 0.6%.

Going ahead, Dr. Joseph Thomas, Head of Research, Emkay Wealth Management said, “The equity market continues to test support levels influenced by the developments abroad, mainly the US, and inordinately led by data points on inflation. The persistence of inflation points to a status quo on the policy stance, and this is affecting markets due to an assessment of growth prospects which is not entirely favourable. The very same factors are likely to guide the markets movements in the coming weeks too.”

According to Mitul Shah – Head of Research at Reliance Securities, the aggregate results for the sample of NSE 500 companies so far have seen Revenue/EBITDA/PAT growth of 19%/ 11%/ 5% YoY. Profitability has been under pressure due to elevated raw material costs on a YoY basis. RM costs though have cooled off on a QoQ basis leading to improvement in gross margins. PAT growth has been impacted due to higher finance costs on the back of an increase in interest rates.

Further, Shah highlighted after dipping for two months, India’s retail inflation surged in January to 6.52%, above the RBI’s tolerance band of 2-6%. A surge was expected due to an unfavourable base effect from last year. But January’s 6.52% rise against 5.72% in December was much higher than expected, partly fuelled by rising food prices. Food inflation was up 5.94% vs 4.2% in December. On the other hand, WPI eased to a 24-month low in January at 4.73% YoY vs 4.95% last month. This indicates moderating supply-side pressures and should help in cooling down CPI in the coming months.

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