FPIs Begin December As Net Sellers

Foreign portfolio investors (FPIs) have started December on a negative note, remaining net sellers of Indian equities. This trend marks the continuation of a three-day selling streak for these overseas investors.

As of now, FPIs have offloaded stocks worth a total of Rs 238.3 crore. In a contrasting move, domestic institutional investors (DIIs) have showed positive sentiment by purchasing shares worth Rs 3,588.7 crore, according to provisional data from the National Stock Exchange.

Yearly Overview of FPI Activity

Looking back at November, FPIs sold off stocks amounting to Rs 45,974.1 crore, while DIIs managed to buy stocks worth Rs 44,483.9 crore. The situation has been similar in October, where FPIs were net sellers of equities worth Rs 1.14 lakh crore, and DIIs bought equities totaling Rs 1.07 lakh crore.

In total, FPIs have sold Indian equities worth Rs 16,009 crore in 2024 so far, as reported by the National Securities Depository Ltd.

Market Reactions and Future Predictions

Despite the FPI selling, there are signs of resilience in the Indian markets. The NSE Nifty 50 and BSE Sensex indices have managed to extend their gains into a second consecutive day, with major contributors being industry giants like Reliance Industries Ltd. and Infosys Ltd..

The Nifty 50 saw an increase of 144.95 points, or 0.60%, closing at 24,276.05. Similarly, the Sensex climbed by 445.29 points, or 0.56%, to close at 80,248.08.

Looking ahead, with 45 new entrants in the futures and options market segment, experts predict that traders might increase their participation in the coming months. According to Vijay Bhambwani, CEO of Bsplindia.com, there could be an uptick in market volatility since retail traders may likely step up their exposure following these changes.

There is also speculation regarding a potential 'Santa Claus rally,' where institutional players typically drive stock prices higher to enhance net asset values as the fiscal year draws to a close for foreign institutional investors. Bhambwani noted that year-end periods have historically shown bullish trends in the markets, creating a hopeful outlook amidst the current selling activity.

FPIs, Equities, Markets