FIIs sell Indian stocks worth ₹11,593.08 crore, DIIs buy worth ₹8,166.53 crore

A sluggish trend in global markets due to deepening Middle-East tensions also weighed on investors’ sentiments, said analysts.

Foreign institutional investors (FIIs) on Wednesday sold stocks of Indian companies worth ₹11,593.08 crore and bought stocks for ₹9,761.24 crore, resulting in an outflow of ₹1,831.84 crore,  according to NSE data.

Domestic institutional investors (DIIs) bought equities worth ₹8,166.53 crore and offloaded shares worth ₹6,697.03 crore, resulting in an inflow of ₹1,469.50 crore, the exchange data showed.

The 30-share BSE Sensex plunged 551.07 points, or 0.83%, to end at 65,877.02. During the day, it fell 585.99 points, or 0.88%, to 65,842.10.

The NSE Nifty declined 140.40 points, or 0.71%, at 19,671.10.

Prashanth Tapse, senior VP (research) at Mehta Equities Ltd, said: “Nervousness remained high amidst deepening Middle-East tensions, as Israel-Palestine conflict deepens. Other negative factors such as Uninspiring Q2 from corporate India Inc, the 10-year US Treasury yields spiking to 4.85%, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powells Thursday’s speech continue to weigh on the sentiment. Technically, Nifty’s biggest support is placed at the 19509 mark, while confirmation of strength for the index can be seen once it surpasses the 19887 mark hurdle.”

In the broader market, the BSE midcap gauge declined 0.85% and smallcap index dipped 0.32%.

“Geopolitical tensions in the Middle-East due to the raging war between Israel and Hamas spooked Indian markets as investors turned risk-off and hammered stocks at will. The market is more concerned about surging crude oil prices as this could hurt inflation and may lead to interest rates remaining higher in the near to medium term. Already the market is facing FII money exodus from the domestic market and re-routing the funds into safe haven assets like gold and US dollar,” said Shrikant Chouhan, head of research (retail), Kotak Securities Ltd.

“Technically, the Nifty faced resistance near 19850 level and corrected sharply. It has now formed double top formation on daily and intraday charts and bearish candle on daily charts, which is indicating further weakness from the current levels,” added Chouhan.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 18 Oct 2023, 11:34 PM IST