FPIs Stay Net Sellers For Second Consecutive Day
Foreign portfolio investors offloaded stocks worth Rs 6,409.9 crore, while domestic institutional investors mopped up stocks worth Rs 2,706.5 crore.
Overseas investors stayed net sellers of Indian equities for the second straight day on Tuesday, while domestic investors turned net buyers.
Foreign portfolio investors offloaded stocks worth Rs 6,409.9 crore, while domestic institutional investors mopped up stocks worth Rs 2,706.5 crore, according to provisional data shared by the National Stock Exchange.
"FPI outflows and increased currency demand during the festival season have also been draining the domestic liquidity," a Crisil report said. "The Reserve Bank of India expects it to remain under pressure in the near future, which prompted the central bank to cut banks’ cash reserve ratio by 50 basis points in December."
The FPIs offloaded equities worth Rs 226.7 crore, while the DIIs bought Rs 2,880 crore last week. In December so far, the FPIs have mopped up equities worth Rs 5,018.3 crore, and the DIIs purchased stocks worth Rs 7,144.7 crore.
In November, the FPIs sold stocks worth Rs 45,974.1 crore, and 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.
The benchmark equity indices extended its fall for the second consecutive day on Tuesday, losing nearly 2% since Friday amid weak sentiment in the global markets a day ahead of the outcome of the US Federal Reserve's meeting.
The NSE Nifty ended 332.25 points or 1.35% down at 24,336 and the BSE Sensex closed 1,064.12 points or 1.3% lower at 80,684.45. During the day, both the Nifty and Sensex had declined 1.4% each.
