FIIs maintain Rs 10,437 crore selling streak over last eight sessions

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights a notable current market trend wherein Foreign Institutional Investors (FIIs) have engaged in sustained selling amounting to Rs 10,437 crore over the past eight trading sessions. In contrast, Domestic Institutional Investors (DIIs) have exhibited consistent buying activity, acquiring Rs 10,860 crore during the same period.

Vijayakumar underscores the divergent influences guiding FII and DII activities. FIIs' decisions are often swayed by external factors such as the Dollar Index and US bond yields, while DIIs' actions are primarily shaped by domestic indicators like GDP growth and corporate earnings.

The recent surge in the US 10-year bond yield, crossing the 4 percent mark, has prompted FIIs to offload holdings, possibly redirecting funds towards US bonds. Nevertheless, the domestic market exhibits resilience amidst these dynamics.

In the upcoming period, the market's attention will be attuned to Thursday's release of the US Consumer Price Index (CPI) inflation data, as this data point can have repercussions on market trends.

In Tuesday's early trade, the Sensex has experienced a decline of 71 points, reaching a level of 65,881 points. Among notable decliners, Powergrid and M&M have faced a decrease exceeding 2 per cent. Furthermore, Sun Pharma, NTPC, and JSW Steel have all recorded declines exceeding 1 per cent.

With input from IANS