FPIs Turn Net Sellers After Three Days

Overseas investors turned net sellers of Indian equities on Friday after three straight days of buying, while domestic institutional investors turned net buyers after three consecutive days of selling.

Foreign portfolio investors sold stocks worth Rs 1,830.3 crore, the highest amount sold by the FPIs so far this month. The DIIs bought stocks worth Rs 1,659.1 crore, according to provisional data shared by the National Stock Exchange.

The FPI flows are expected to remain volatile. Slower economic growth can lead to cautious investor sentiment, which can affect the FPI flows negatively, according to Shrikant Chouhan, head of equity research at Kotak Securities.

In December so far, FIIs have mopped up Rs 11,933.6 crore worth of equities, whereas the DIIs purchased Rs 1,792.5 crore worth of equities.

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.

In 2024, foreign institutions have been net sellers of Rs 9,435 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 BSE Sensex ended Friday's session with marginal loss as HDFC Bank Ltd. and Reliance Industries Ltd. share prices dragged. The Nifty posted the biggest weekly gains since early June.

The Nifty ended 30.62 points or 0.12% down at 24,677.80, and the Sensex ended 56.74 points or 0.07% down at 81,709.12. During the day, the Nifty fell as much as 0.36% to 24,620.50 and the Sensex declined 0.32% to 81,506.19.

The indices fell sharply after the Reserve Bank of India kept the repo rate unchanged at 6.5% and maintained a neutral stance. The central bank reduced the gross-domestic-product forecast for the current financial year, while it increased the projection for inflation.