Overseas investors remained net sellers of Indian equities for the third consecutive session on Monday, while the domestic institutional investors remained net buyers for the fourth straight session.
Foreign portfolio investors offloaded stocks worth Rs 238.3 crore and the DIIs bought shares worth Rs 3,588.7 crore, according to provisional data by the National Stock Exchange.
In November, FPIs sold stocks worth Rs 45,974.1 crore, whereas the DIIs mopped up stocks worth Rs 44,483.9 crore. In October, the FPIs had sold equities worth Rs 1.14 lakh crore and the DIIs bought equities worth Rs 1.07 lakh crore.
"With 45 new entrants in the futures and options segment, traders are likely to step up participation in the coming months," Vijay Bhambwani, chief executive officer of Bsplindia.com, said. "Volatility will rise from the present levels as retail traders step up their exposure."
Traders in the FPI markets may participate in a Santa Claus rally, wherein institutional players put their best foot forward and bolster stock prices to display higher net asset values due to it being the fiscal year end for foreign institutional investors. He noted that year endings tend to be "historically bullish" market periods.
In 2024, foreign institutions have been net sellers of Rs 16,009 crore worth of Indian equities so far, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The NSE Nifty 50 and the BSE Sensex extended gains to the second day as the share prices of Reliance Industries Ltd. and Infosys Ltd. led. The benchmark indices recovered at the later part of the session.
The Nifty 50 ended 144.95 points or 0.60% higher at 24,276.05, and the Sensex closed 445.29 points or 0.56% up at 80,248.08.
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