Foreign Investors Persist in Selling Streak Amid Indian Market Volatility

Foreign investors have extended their selling spree in Indian equities for a third consecutive week in November, totaling Rs 41,872 crores. While domestic investors have stepped in to stabilize indices, significant outflows from foreign players continue to create market volatility. Experts suggest potential recovery hinges on Maharashtra election outcomes.

Foreign investors have sustained their aggressive selling in Indian equity markets, marking a three-week streak in November, as reported by the National Stock Exchange. This week, they offloaded equities worth Rs 11,412 crore, intensifying the downward pressure on the market.

With foreign investors' net selling in November reaching Rs 41,872 crores, a cloud of persistent bearish sentiment looms over the market. This continuous exit has been a source of volatility, while domestic institutional investors (DIIs) have stepped in to offer crucial support.

Akshay Chinchalkar, Head of Research at Axis Securities, suggested that the Maharashtra election results may bolster foreign investor confidence and potentially trigger inflows, citing past seasonal bullish trends. He indicated that over USD 14 billion have exited since September's end, with a massive foreign investor sell-off of Rs 155730 crore reported between October 1 and November 23.

In an effort to mitigate foreign outflows, DIIs have purchased equities worth Rs 11,035 crore this week, with their net buying in November totaling Rs 37,559 crore. This divergence in strategy between foreign investors and DIIs underscores differing market outlooks, with domestic players remaining optimistic despite global tensions.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that foreign institutional investors (FIIs) relentlessly sold Rs 113858 crores in October, marking the highest monthly sell-off ever recorded. Although this trend has persisted into November, FPIs continue to be active in the primary market, positioning for long-term gains. (ANI)

(With inputs from agencies.)