What's ahead: FII outflow slows to ₹252 crore, DIIs inject ₹823 crore, and Nifty 50 gains 1% on the week

 What's ahead: FII outflow slows to ₹252 crore, DIIs inject ₹823 crore, and Nifty 50 gains 1% on the week

On Friday, November 10, foreign institutional investors (FIIs) kept selling, but at a slower pace due to the US Federal Reserve's hawkish pause on interest rates and the drop in crude oil prices. In an effort to offset the sell-off, domestic institutional investors (DIIs) invested ₹823 crore in Indian equities today, turning a profit.

According to NSE statistics, FIIs together purchased ₹6,583.57 crore of Indian stocks and sold ₹6,845.38 crore, resulting in a ₹261.81 crore outflow on Friday. In the meanwhile, DIIs had an inflow of ₹822.64 crore after investing ₹6,239.42 crore and offloading ₹5,416.78 crore.

Since October, FIIs have liquidated Indian stocks owing to the geopolitical concerns posed by the Israel-Hamas conflict, record-high US bond rates, and the rise of the dollar index. The cumulative effect of these variables has subsequently affected market sentiment. Fears of rising interest rates and a global downturn have kept foreign inflows modest.

Soon, the selling trend will end, and FIIs may become purchasers

According to analysts, the Indian market is resilient despite a number of obstacles, and international investors are becoming more worried that if they keep selling, they won't be able to take advantage of the market's possible comeback. This might prevent the FIIs from making big sales in the next days.

The nature of the Indian market suggests that the "buy on dips" tactic will remain effective. Financials are expected to do strongly in Samvat 2080 thanks to their excellent valuations and strong growth. The industry is being impacted by sustained FII selling in financials, but this will only last temporarily, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The FIIs' propensity for aggressive selling is probably due to the FOMO (Fear of Missing Out) issue. Dr. V K Vijayakumar said, "This will be beneficial for the financial sector, which has been bearing the brunt of FII selling."