FIIs sold Rs 50,000 crore of shares in 5 weeks; here's why
After purchasing equities worth Rs 13,672 crore from April 8-12, FIIs offloaded Rs 50,260 crore of shares between April 15 and May 17. The buying appetite of DIIs capped the downside. According to data from the exchanges, DIIs bought shares worth Rs 64,400 crore during the same period.
- May 18, 2024,
- Updated May 18, 2024 7:38 AM IST
Foreign institutional investors (FIIs) continue their selling spree, marking the fifth consecutive week ending on May 17. After purchasing equities worth Rs 13,672 crore from April 8-12, they offloaded Rs 50,260 crore of shares between April 15 and May 17.
On the other hand, buying appetite of domestic institutional investors (DIIs) cushioned the downslide. According to data collected from the exchanges, DIIs bought shares worth Rs 64,400 crore during the same period.
The benchmark equity index BSE Sensex declined marginally by 0.44 percent to 73,917.03 on May 17 from 74,244.90 on April 12.
Jaykrishna Gandhi, Head-Business Development, Institutional Equities, Emkay Global Financial Services said, “FIIs continue to be on a net selling spree. High volatility, elections uncertainty and optionally on Chinese markets recovery drives this bulk FII selling.”
Going ahead, there are expectations that the county may see upwards of $2.5 billion in passive FPI flows after a rejig of MSCI indices this month, with the country’s representation in the MSCI EM Index set to inch closer to 19 percent from 18.3 percent at present.
“The adjustments are slated for May 31, and India is expected to witness a net inflow of upwards of $2.5 billion in FII passive flows. With 13 inclusions and 3 exclusions, the net stock count post-rejig will be 146 for India in the MSCI Standard/EM Index. Additionally, there will be a net inclusion of 14 stocks in the Smallcap Index, bringing India’s total stock count in the small-cap index to 497,” Nuvama said in a report.
Abhilash Pagaria, Head-Nuvama Alternative & Quantitative Research said, “I remain extremely bullish on India, especially with active participation from mutual funds and HNI/retailers in the Indian equity markets. We should anticipate many more inclusions in the EM Index. We are still at the tip of the iceberg.”
Of late, YES Bank, Suzlon Energy, Vedanta, Zomato and Polycab India are some of the stocks whose weightages have been raised in the MSCI Global Standard index in May review, the global index aggregator said on May 15. PB Fintech Ltd (Policybazaar), Sundaram Finance and NHPC are the stocks that are included in the MSCI Global Standard Index along with Solar Industries, Mankind Pharma, Bosch, Indus Towers and Canara Bank.
Foreign institutional investors (FIIs) continue their selling spree, marking the fifth consecutive week ending on May 17. After purchasing equities worth Rs 13,672 crore from April 8-12, they offloaded Rs 50,260 crore of shares between April 15 and May 17.
On the other hand, buying appetite of domestic institutional investors (DIIs) cushioned the downslide. According to data collected from the exchanges, DIIs bought shares worth Rs 64,400 crore during the same period.
The benchmark equity index BSE Sensex declined marginally by 0.44 percent to 73,917.03 on May 17 from 74,244.90 on April 12.
Jaykrishna Gandhi, Head-Business Development, Institutional Equities, Emkay Global Financial Services said, “FIIs continue to be on a net selling spree. High volatility, elections uncertainty and optionally on Chinese markets recovery drives this bulk FII selling.”
Going ahead, there are expectations that the county may see upwards of $2.5 billion in passive FPI flows after a rejig of MSCI indices this month, with the country’s representation in the MSCI EM Index set to inch closer to 19 percent from 18.3 percent at present.
“The adjustments are slated for May 31, and India is expected to witness a net inflow of upwards of $2.5 billion in FII passive flows. With 13 inclusions and 3 exclusions, the net stock count post-rejig will be 146 for India in the MSCI Standard/EM Index. Additionally, there will be a net inclusion of 14 stocks in the Smallcap Index, bringing India’s total stock count in the small-cap index to 497,” Nuvama said in a report.
Abhilash Pagaria, Head-Nuvama Alternative & Quantitative Research said, “I remain extremely bullish on India, especially with active participation from mutual funds and HNI/retailers in the Indian equity markets. We should anticipate many more inclusions in the EM Index. We are still at the tip of the iceberg.”
Of late, YES Bank, Suzlon Energy, Vedanta, Zomato and Polycab India are some of the stocks whose weightages have been raised in the MSCI Global Standard index in May review, the global index aggregator said on May 15. PB Fintech Ltd (Policybazaar), Sundaram Finance and NHPC are the stocks that are included in the MSCI Global Standard Index along with Solar Industries, Mankind Pharma, Bosch, Indus Towers and Canara Bank.