As oil prices fall, FIIs sell 90 crore worth of Indian stocks; DIIs invest 783 crore; see details

 As oil prices fall, FIIs sell 90 crore worth of Indian stocks; DIIs invest 783 crore; see details

On Friday, October 6, despite the fact that the local market benchmarks Sensex and Nifty finished higher as the price of crude oil abruptly corrected to $84 per barrel, foreign institutional investors (FIIs) continued to sell. Again net purchasers, domestic institutional investors (DIIs) bought 783.25 crore in Indian equities today.

According to NSE statistics, FIIs collectively purchased Indian shares worth $6,727.34 billion and sold them for $6,817.63 billion, causing an outflow of $90.29 billion on Friday. In the meanwhile, DIIs made infusions of 7,150.57 crore and outflows of 6,367.32 crore, for a net inflow of 783.25 crore.

According to street estimates, the Reserve Bank of India's Monetary Policy Committee (MPC) kept repo rates and policy stance unchanged. The rate-setting committee concluded in favor of maintaining the repo rate at 6.5 percent on Friday. Five of the six MPC members voted in favor of the central bank's continued "withdrawal of accommodation" policy position.

Analysts estimate that FIIs sold $25,000 crore in cash markets last month. Last week, amid worries about interest rates being high for a lengthy period of time and its effects on the global economy, the US Treasury yields reached a 16-year high and crude oil prices almost reached $98 per barrel. Since August, this has substantially fueled the FII selling trend.