FPIs stay as net buyers during Indian stocks worst week in 6 months, inflows rise to ₹11,557 cr so far in Dec

As per the NSDL data, in December, by end of Friday, FPIs inflow stood at ₹11,557 crore in the equities. This is higher by ₹1,002 crore from the inflow of ₹10,555 crore that stood by end of December 16th.

So far, December is still the third biggest buying month by FPIs year-to-date. However, with one week remaining for December and the entire year 2022 to end, it will be keenly watched how FPIs perform by end of the current month.

While equities have stayed as preferred picks by FPIs so far in December, the case is not the same in debt and debt-VRR markets as there was an outflow of ₹2,900 crore and ₹399 crore in these two instruments between December 1st to 23rd. The hybrid market has recorded an inflow of merely ₹42 crore.

Overall, FPIs’ investment in the Indian markets (including equities, debt, debt-VRR, and hybrid) stood at ₹8,301 crore.

In the equities, FPIs made the biggest buying in August to the tune of ₹51,204 crore followed by November to ₹36,239 crore so far in 2022.

Year-to-date, FPIs are net sellers in equities with an outflow of ₹1,21,001 crore.

Coming to foreign institutional investors (FIIs), they were net buyers on December 20th (inflow of ₹455.94 crore) and December 22nd (inflow of ₹928.63 crore). However, FIIs were net sellers on December 19th (outflow of ₹538.10 crore), further on December 21st and 23rd with an outflow of ₹1,119.11 crore and ₹706.84 crore respectively. Overall, in the current week, FIIs were net sellers with an outflow of ₹974.98 crore in the Indian stocks.

So far, FIIs are net sellers with an outflow of ₹8,469.53 crore in Indian equities in December. In the previous month, they were net buyers with an inflow of ₹22,025.62 crore.

On Friday, the benchmark Sensex closed at 59,845.29 nosediving by 980.93 points or 1.61%. While Nifty 50 shed 320.55 points or 1.77% to close at 17,806.80. In the current week, Sensex declined over 2.4% and the Nifty 50 slipped over 2.5%. This would be their biggest weekly fall in six months. Also, it needs to be noted that both benchmarks stand nearly at two-month lows.

Talking about Friday’s performance, Deepak Jasani, Head of Retail Research, HDFC Securities said, “Nifty fell for the fourth consecutive session on Dec 23, after US stocks sold off in the previous session. Nifty opened with a down gap and kept falling through the day before closing 1.77% or 320.6 points lower at 17806.8. This was the sharpest single-day fall in three months. Nifty was the second-worst performer in the region after South Korea. Volumes on the NSE were not unusually large suggesting lack of buyers at lower levels. Broad market indices kept falling more than the Nifty even as the advance-decline ratio on the BSE fell to 0.15, the lowest since Feb 24, 2022.”

On the global front, Jasani added, “European stock markets edged higher Friday in thin holiday-affected volumes while most Asian markets indexes fell after forecast-beating US data fuelled expectations that the Federal Reserve will lift interest rates well into next year. US inflation data due later Friday also caused concerns that it may be yet another reason for the Federal Reserve to harden its resolve to pursue an aggressive policy.”

Going forward, Jasani added, “The down move could continue with some intermittent bounces. Nifty seems headed towards 17730 and later 17349. 18133-18246 may be tough to cross on the upside for some time.”

Further, on Nifty, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said, “On the daily charts we can observe that the Nifty has breached and closed below the psychological level of 18000. Moreover, it has breached the rising support trendline which indicates that the Nifty is firmly in the grip of Bears. On the weekly charts, it has reached the 20-week moving average (17839) which can provide some relief during the next week, however, it is likely to be short-lived and overall short-term trend has turned negative. On the downside we expect the Nifty to drift lower till 17560 which is the 61.82% fibonacci retracement level of the rise from 16748 – 18889. In terms of levels, Crucial support is placed at 17730 – 17700 and the immediate resistance stands at 17930 – 18000.”

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