Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 13th consecutive session on Wednesday, while domestic institutional investors stayed net buyers for the 17th straight session.
The FPIs offloaded stocks worth Rs 3,435.9 crore, according to provisional data from the National Stock Exchange. Domestic institutional investors bought stocks worth approximately Rs 2,256.3 crore.
In the last five sessions, the FPIs have sold equities valued at Rs 18,005.5 crore, while the DIIs have purchased shares worth Rs 13,798.5 crore.
In October, including Wednesday sales, the FPIs offloaded stocks worth Rs 67,310.8 crore, while the DIIs mopped up stocks worth Rs 63,981.5 crore. In September, the FPIs sold stocks valued at Rs 15,423.4 crore, while the DIIs purchased stocks valued at Rs 31,860.3 crore.
Foreign institutions have been net buyers of Rs 32,776 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.
"Valuations of Indian equities, especially small & midcaps, are trading at significant premium compared to long-term averages, while the return-on-equity profile has improved across the indices," Motilal Oswal said in its October edition of their 'Alpha Strategy' report.
"However, the sustained inflows from DIIs and strong corporate fundamentals will act as a 'Suit of Armour' and cushion domestic equity market valuations in the wake of geopolitical events and FII outflows," it added.
The NSE Nifty 50 and the BSE Sensex recorded a two-day losing streak on Wednesday, tracking a sell-off across the globe. Most share indices in the Asia–Pacific and Europe plunged on cues from overnight moves on Wall Street.
The Nifty 50 closed 86.05 points or 0.34%, down at 24,971.30, and the Sensex settled 318.76 points or 0.39%, down at 81,501.36.
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