FIIs remain net sellers for sixth straight week; offload equities worth Rs 11,490 crore

Amid a sharp spike in the crude oil prices and the higher US bond yields the foreign institutional investors FIIS continued to be net sellers in the Indian equity market for the sixth consecutive week according to analystsThe domestic institutional investors DIIs continued to remain net buyers providing the cushion to the market indices against a steep declineOn the flows front FIIs stayed net sellers for the sixth straight week offloading Rs 11490 crore DIIs extended their buying streak with net purchases of Rs 16398 crore which cushioned the decline Pabitro Mukherjee Deputy Vice President Research Bajaj BrokingHe noted that since the start of September FIIs have sold a net Rs 18531 crore worth equities while DIIs were net purchasers buying equities worth Rs 52617 crore providing cushion to the Nifty that slipped 390 per cent from its Augustend close of 2408040Over the past month FIIs were net sellers throughout all weeks while DIIs remained consistent net buyers limiting the Niftys 491 per cent slide from 2433455 to 2314050 August 25 to September 25 he addedFPI flowsSimilarly Foreign Portfolio Investors FPIs continued to sell during this week but were investors in the primary market according to analystsFPIs were sellers in the secondary market with provisional NSE data showing Rs 11490 crore of net equity selling during September 21 to 25However according to Dheeraj Gaur Chief Investment Strategy Officer at Choice Wealth the settled depository data tells a different story with the National Securities Depository Limited and Central Depository Services Limited data showing a net Rs 3843 crore inflow into equity for the weekThe large divergence is explained almost entirely by continued FPI participation in the primary market particularly the Rs 5515 crore primarymarket inflow recorded on 24 September he saidThe trend of FPI flows turning negative after positive inflows in July and August was evident early this month noted analystsThis trend has sustained and the total equity outflows through exchanges have touched Rs 25682 crores this month through 25th August Also the trend of FPI investment through the primary market continues with total investment of Rs 8551 crores up to 25th of this month V K Vijayakumar Chief Investment Strategist Geojit Investments saidThis trend of selling through the exchanges and investing through the primary market has taken the total FPI selling this year through exchanges to Rs 295971 crores and the total investment through the primary market during this period to Rs 54398 crores he addedGiven the high US bond yields and better returns from Indias IPO market this trend is likely to continue Yet another significant trend in FPI investment is that even though they are sellers in largecaps they have been sustained buyers in midand smallcaps FPIs also are chasing the market momentum he saidSensex and Nifty decline during the weekThe domestic equity benchmark indices declined for the seventh straight week The Sensex lost 39922 points or 054 per cent to end at 7389574 The Nifty slipped 20590 points or 088 per cent to settle at 2314050OutlookAccording to Mukherjee market participants will closely monitor Brent crude oil prices developments in USIran geopolitical tensions and US second quarter GDP data as key triggers for market direction in the coming week