Indian markets back on FPIs’ shopping list
FIIs invest Rs11,730 cr in last week as against offloading Rs14,794-cr worth shares during June 3 -7 and Rs40,000 cr in May
image for illustrative purpose
The reason for FIIs investing more in the debt market is the inclusion of India in the global bond index. FIIs have withdrawn Rs26,428 cr from the Indian equity market. However, they invested Rs59,373 crin debt market so far in 2024
Mumbai: Foreign investors were selling equity in Indian markets for the last few months. The trend changed from the previous week when Foreign Institutional Investors (FIIs) invested Rs 11,730 crore in the Indian equity market.
FIIs sold more than Rs 40,000 crore of equity in May which is the biggest figure in any month of 2024 so far.According to data from depositories, Net FIIs’ outflow for the month stood at Rs 3,064 crore as of June 14.
Foreign investors had sold Rs14,794 crore equity between June 3 and June 7. Foreign investors are preferring the debt market instead of equity. So far this month till June 14, FIIs have invested Rs5,700 crore in the debt market.
According to experts, “the reason for FIIs investing more in the debt market is the inclusion of India in the global bond index.”
FIIs have withdrawn Rs26,428 crore from the Indian equity market. However, they invested Rs59,373 crore in the debt market so far in 2024.
The Indian stock market continues to rise. Last week, both Sensex and Nifty made new all-time highs of 77,145 and 23,490 respectively.During this period, Nifty Midcap and Smallcap indices posted gains of around 4 per cent and 5 per cent, respectively.
All eyes on full Budget
India stock markets were closed on Monday on the account of Eid-ul-Adha. Trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will resume on Tuesday. This week several factors will affect markets.
The Centre will present the Budget in July and any related updates will affect the market movement. Additionally, monsoon and institutional investors’ inflow data will be crucial for the market.
Santosh Meena, head (research), Swastika Investmart Ltd, said: “Currently, Nifty is facing resistance in the range of 23,400 to 23,500. In case of a decline, support is at 23,200 to 23,100. If Nifty goes above 23,500, it can go up to 23,800 and even 24,000.”
Arvinder Singh Nanda, senior vice-president, Master Capital Services Ltd, said: “Bank Nifty is around the range of 50,000. If it breaks the level of 50,200 then it can go up to 51,000. There is a strong support zone at 49,500 to 49,400. If there is further decline then it can go up to 49,000.”
On the global front, data from China, movements in the dollar index, and US bond yields will be crucial.
Recent data from China has painted a mixed picture, showing a stronger recovery in external demand, but weak domestic consumption. Expectations are that Industrial Production will edge lower to 6.4 per cent year-on-year from 6.7 per cent. This slight decline may reflect potential issues in the supply chain or a dip in global demand.
