FPIs Sell Stocks Worth Rs 15,828 Crore This Week

This week has seen substantial selling activity from foreign portfolio investors (FPIs) in the Indian stock market. They offloaded stocks worth an impressive Rs 15,828 crore, marking a significant retreat from equities. This selling spree has extended for five consecutive days, showcasing a determined exit from the market amidst a fluctuating economic landscape.

Friday's Selling Highlights

On Friday alone, FPIs dumped approximately Rs 3,597.8 crore in stocks, as per the provisional data released by the National Stock Exchange. This rapid sell-off was in stark contrast to the buying behavior of domestic institutional investors (DIIs), who purchased stocks worth Rs 1,374.4 crore on the same day.

Net Sales and Purchases Overview

Throughout the week, the cumulative selling by FPIs reached Rs 15,828.1 crore, while DIIs appeared to take advantage of lower prices, accumulating shares worth Rs 11,873.9 crore. In the month of December thus far, FPIs have sold equities worth Rs 4,121.2 crore against DII purchases totaling Rs 16,546.4 crore.

Reflecting on the previous month, November witnessed FPIs offloading shares valued at Rs 45,974.1 crore, with domestic investors buying stocks worth Rs 44,483.9 crore. October was even more drastic, as FPIs sold equities worth Rs 1.14 lakh crore, while DIIs managed purchases worth Rs 1.07 lakh crore.

Year-to-Date Trends and Market Response

Despite this week's selling, foreign investors have been net buyers of Indian equities to the tune of Rs 6,770 crore in 2024, according to the National Securities Depository Ltd. data updated till the most recent trading day. However, the outlook remains shaky as the major equity indices faced downward pressure, closing at their lowest levels in over a month. The hawkish tone from the US Federal Reserve concerning interest rates has contributed to a dower sentiment in the global markets.

On Friday, the Nifty 50 index closed down by 364.20 points, or 1.52%, settling at 23,587.50, while the BSE Sensex fell by 1,176.46 points, or 1.49%, ending at 78,041.59. Consequently, the market capitalization of Nifty 50 companies plummeted by Rs 2.9 lakh crore, reducing to Rs 186.97 lakh crore by the close of trading on Friday.

Conclusion

This week's events signal a shake-up in the market dynamics, with FPIs pulling back significantly while DIIs remain active buyers. The pivotal movements in international monetary policy continue to impact investor behavior, warranting close observation as investment strategies adapt to these market fluctuations.

FPIs, stocks, market