Thursday’s trade: FIIs pull out ₹1,417 cr, biggest selling of the week; DIIs offset losses with buying

Foreign funds outflow is among some of the reasons why markets are down. On Thursday, foreign institutional investors (FIIs) made their biggest selling of the current week by pulling out more than ₹1,417 crore from Indian equities. However, the outflow was offset by domestic institutional investors (DIIs) who continued to buy. Currently, Sensex is near 59,600 levels, and the Nifty 50 is breathing a little over 17,510.

As per NSE data, FII buying value stood at ₹6,791.35 crore on Thursday in the Indian equities, while it sold a whopping ₹8,208.59 crore. This led to an outflow of at least ₹1,417.24 crore in the day overall.

Meanwhile, DIIs buying was to the tune of ₹7,010.44 crore in the domestic equities, while they sold somewhat ₹5,424.38 crore. Hence, they were net buyers with an inflow of ₹1,586.06 crore in the day. Unlike FIIs, DIIs have made their largest buying of the week.

Sensex and Nifty 50 continued to fall for the fifth day straight. More rate hike worries heightened after the central bank’s minutes hinted at the need to bring down inflation in 2023-24 as this economic indicator still remains high and poses the biggest threat to the macroeconomic outlook ahead.

On Thursday, Sensex dipped by 139.18 points to end at 0.23%, while Nifty 50 shed 43.05 points or 0.25% to close at 17,511.25.

But markets have been in deep red since February 17, 2023. In 5 trading sessions, Sensex has tumbled by 1,713.71 points or 2.79% and Nifty 50 has plummeted by 524.6 points or 2.91%.

However, this is not the case with FIIs and DIIs. So far in the week, both the category investors have shown a mixed pattern as of now.

FIIs started the week as sellers with an outflow of merely ₹158.95 crore on February 20th but took a U-turn to become buyers on February 21st with an inflow of ₹525.80 crore in the equities. However, when Sensex and Nifty 50 dropped by more than 1.5% each on Wednesday, FIIs sold around ₹579.82 crore. Hence, the latest reading would be a second consecutive selloff.

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