FIIs extend buying momentum on Dalal Street with Rs 7,212 crore inflows; DIIs continue equity sell-off
Foreign institutional investors recorded significant net purchases of Indian equities on November 9. Domestic institutional investors continued their trend of selling equities, resulting in a notable outflow. Both Sensex and Nifty indices finished...
By Kumar Gaurav, ETMarkets.com |
Agencies
Foreign investors return aggressively to Indian equities, driving Sensex and Nifty higher despite domestic institutional selling and persistent volatility across broader markets.
Foreign institutional investors (FIIs) extended their buying momentum in Indian equities on Monday, November 9, amid global uncertainties, while domestic institutional investors (DIIs) continued their selling spree for another session.
According to NSE data, FIIs recorded net purchases of Rs 7,212.22 crore in Indian equities on November 9. In contrast, DIIs remained net sellers, offloading equities worth Rs 7,172.53 crore. During the session, FIIs purchased shares worth Rs 20,310.99 crore and sold equities worth Rs 13,098.77 crore. DIIs, meanwhile, bought shares worth Rs 12,764.97 crore but sold equities worth Rs 19,937.50 crore.
Today's buying follows a strong spell of foreign investor purchases last week, with FIIs recording net inflows of nearly Rs 48,263 crore into Indian equities over five consecutive trading sessions between November 2 and November 6.
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V K Vijayakumar, Chief Investment Strategist at Geojit Investments, attributed the sustained foreign buying to India's impressive earnings growth and attractive large-cap valuations, which have made the domestic market a favoured investment destination. He also pointed to the ongoing sell-off in artificial intelligence (AI)-related stocks as a factor supporting India's appeal among foreign investors.
"The AI sell-off has made India, which is widely regarded as a non-AI trade, attractive for FPIs. Furthermore, the impressive earnings growth in India and the attractive large-cap valuations have made India a favoured investment destination," said Vijayakumar.
At the close, the Sensex gained 107.25 points, or 0.13%, to settle at 81,106.65, while the Nifty advanced 58.25 points, or 0.23%, to end at 25,044.65, reflecting resilience despite intraday volatility.
Broader markets largely tracked the benchmark indices. The Nifty Midcap index gained 0.55%, while the Nifty Smallcap index ended marginally higher by 0.10%.
Sectoral performance remained mixed. Nifty PSU Banks, Pharma and Healthcare emerged among the leading gainers, while IT, Metals and FMCG witnessed selling pressure and were among the key laggards.
According to Vinod Nair, Head of Research at Geojit Investments, improving FII participation and better-than-expected corporate earnings have strengthened expectations of an upgrade to the FY27 earnings outlook, lending support to market sentiment.
"While several key macro tailwinds appear to be increasingly priced in, valuation comfort, particularly in large caps, easing geopolitical concerns, moderation in crude oil prices from recent peaks, and prospects of a double-digit earnings recovery provide a constructive medium-term backdrop. Investors are now awaiting India and US inflation data for fresh cues on the interest-rate trajectory, while crude oil prices and global risk sentiment remain key near-term monitorables," said Nair.
"The index has completely retraced its nine-week decline from 24,774 to 22,179 in just five weeks. A faster retracement of the previous major decline in almost half the time interval signals strength and opens further upside in the coming weeks towards 25,400 and 25,800 levels," said Mukherjee.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
According to NSE data, FIIs recorded net purchases of Rs 7,212.22 crore in Indian equities on November 9. In contrast, DIIs remained net sellers, offloading equities worth Rs 7,172.53 crore. During the session, FIIs purchased shares worth Rs 20,310.99 crore and sold equities worth Rs 13,098.77 crore. DIIs, meanwhile, bought shares worth Rs 12,764.97 crore but sold equities worth Rs 19,937.50 crore.
Today's buying follows a strong spell of foreign investor purchases last week, with FIIs recording net inflows of nearly Rs 48,263 crore into Indian equities over five consecutive trading sessions between November 2 and November 6.
ALSO READ: Nvidia's Jensen Huang under fire; Bernstein retains $4,000 target price on stock, but with key risks
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, attributed the sustained foreign buying to India's impressive earnings growth and attractive large-cap valuations, which have made the domestic market a favoured investment destination. He also pointed to the ongoing sell-off in artificial intelligence (AI)-related stocks as a factor supporting India's appeal among foreign investors.
"The AI sell-off has made India, which is widely regarded as a non-AI trade, attractive for FPIs. Furthermore, the impressive earnings growth in India and the attractive large-cap valuations have made India a favoured investment destination," said Vijayakumar.
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Sensex, Nifty end higher amid choppy trade
Indian benchmark indices witnessed a volatile and choppy trading session on November 9, amid weekly Nifty expiry and intermittent profit booking following a sharp rally over the previous seven sessions. However, both indices managed to close in positive territory, supported by rupee appreciation, crude oil prices trading below $100 and sustained FII inflows.At the close, the Sensex gained 107.25 points, or 0.13%, to settle at 81,106.65, while the Nifty advanced 58.25 points, or 0.23%, to end at 25,044.65, reflecting resilience despite intraday volatility.
Broader markets largely tracked the benchmark indices. The Nifty Midcap index gained 0.55%, while the Nifty Smallcap index ended marginally higher by 0.10%.
Sectoral performance remained mixed. Nifty PSU Banks, Pharma and Healthcare emerged among the leading gainers, while IT, Metals and FMCG witnessed selling pressure and were among the key laggards.
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According to Vinod Nair, Head of Research at Geojit Investments, improving FII participation and better-than-expected corporate earnings have strengthened expectations of an upgrade to the FY27 earnings outlook, lending support to market sentiment.
"While several key macro tailwinds appear to be increasingly priced in, valuation comfort, particularly in large caps, easing geopolitical concerns, moderation in crude oil prices from recent peaks, and prospects of a double-digit earnings recovery provide a constructive medium-term backdrop. Investors are now awaiting India and US inflation data for fresh cues on the interest-rate trajectory, while crude oil prices and global risk sentiment remain key near-term monitorables," said Nair.
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Nifty 50 eyes 25,400
From a technical perspective, the Nifty formed a small bearish candle with a long lower shadow, signalling consolidation amid stock-specific action, according to Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking. The index remained around the 25,000 mark following its recent strong rally of nearly 11% over the past two weeks."The index has completely retraced its nine-week decline from 24,774 to 22,179 in just five weeks. A faster retracement of the previous major decline in almost half the time interval signals strength and opens further upside in the coming weeks towards 25,400 and 25,800 levels," said Mukherjee.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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