Foreign Institutional Investors (FIIs) continued their heavy selling streak in the Indian markets, offloading shares worth ₹7,421 crore on October 17, 2024. This marks the 14th consecutive session of selling by FIIs, contributing to the ongoing market pressure. In contrast, Domestic Institutional Investors (DIIs) made net purchases of ₹4,980 crore, offering some support to the market but not enough to counterbalance the FII outflows.
Market Performance:
The Indian stock market extended its losses for the third straight session, with the benchmark indices closing in the red. The Sensex dropped by 494.75 points, or 0.61%, to close at 81,006.61, while the Nifty 50 declined by 221.50 points, or 0.89%, to settle at 24,749.80.
Key Market Movements:
- The Nifty 50 opened above the 25,000 mark, riding on positive global cues, but quickly erased gains and slipped into negative territory as the day progressed, finally closing below 24,750.
- The auto, media, and real estate sectors were the worst performers, losing between 2-3%. In contrast, the Information Technology sector was the only sector to close in positive territory, with a 1% gain.
Top Gainers and Losers:
- Biggest Nifty Losers: Bajaj Auto, Shriram Finance, Hero MotoCorp, Nestle, and M&M.
- Biggest Nifty Gainers: Tech Mahindra, Infosys, L&T, Power Grid Corporation, and SBI.
Historical FII Outflows:
The FII selling trend in October has been relentless, with total outflows reaching a staggering ₹67,308 crore by October 16, 2024. This surpasses the previous record of ₹65,816 crore set in March 2020, making October 2024 the highest month of FII selling on record.
Daily FII Selling Activity in October 2024:
- 1st Oct: -₹5,579 crore
- 3rd Oct: -₹15,243 crore
- 4th Oct: -₹9,897 crore
- 7th Oct: -₹8,293 crore
- 8th Oct: -₹5,730 crore
- 9th Oct: -₹4,562 crore
- 10th Oct: -₹4,927 crore
- 11th Oct: -₹4,162 crore
- 14th Oct: -₹3,732 crore
- 15th Oct: -₹1,748 crore
- 16th Oct: -₹3,435 crore
- 17th Oct: -₹7,421 crore
Outlook:
The ongoing FII outflows and the pressure on the stock market highlight heightened volatility. While DIIs continue to support the market with net buying, their efforts are insufficient to offset the large-scale selling by foreign investors. Investors remain cautious amid global uncertainties and domestic market challenges.
