FIIs monthly selling highest since March 2020, but is it nearing exhaustion? Details

Foreign institutional investors (FIIs) have remained net sellers for the past nine months, including June, making Indian market jittery amid volatility. FIIs, along with the soaring crude prices, is one of the biggest factors stopping the market from marching forward. As on June 29, the Foreign Portfolio Investors sold to the tune of Rs 56,974.32 crore in the Indian market against a net buy of Rs 45,221.03 by domestic institutional investors (DIIs).  

Meanwhile, it is also the highest monthly selling figure since March  2020, when the FIIs sold to the tune of Rs 65,816.70 crore in one month  

The data from exchanges shows FIIs were net buyers last in September 2021, when the foreign investors bought equities worth Rs 913.77 crore in the domestic market.   

However, the FIIs selling seems to has mellowed down recently, especially in the past three days. FIIs selling drastically came down to RS 1,278.42 crore on June 27 and Rs 1,244.44 on June 28.  

On Wednesday, at Rs 851 crore, FIIs selling was drastically from June average of Rs 2700 crore.  

Commenting on the recent FIIs trend, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "the decline in FPI selling to Rs 851 crore yesterday from the June average of around Rs 2700 crore also can be interpreted as early signs of selling exhaustion." The data will have to be watched closely to see whether this trend sustains, the expert added.  

Meanwhile, the Indian market was trading marginally higher in the afternoon trade after gaining more than half per cent in the early trade. Around 2.10 pm, the broader Nifty50 inched marginally higher to trade above 15,800 and the Sensex rose more than 150 points to trade near 53,200.  

Nifty midcap and smallcap declined around half per cent each as India VIX remained above 22-mark.  

"In the near-term market movement will be increasingly influenced by the FY23 Q1 results expected from the second week of July onwards," Vijaykumar said while reacting on triggers.