Foreign Institutional Investors Sustain Net Selling of Shares, Domestic Institutional Investors Post Net Buying of Rs 4,701 Crore on April 24

Market Volatility Persists as Foreign Investors Net Sell Indian Equities

Foreign investors (FIIs/FPIs) net sold Rs 8,828 crore worth of Indian equities on April 24, the highest since April 7, according to provisional exchange data. This significant selloff comes as domestic institutional investors (DIIs) net bought shares worth Rs 4,701 crore.

During the trading session, DIIs purchased shares worth Rs 21,560 crore and sold shares worth Rs 16,859 crore. In contrast, FIIs bought shares worth Rs 9,837 crore but sold shares totalling Rs 18,665 crore. This trend suggests that while DIIs are actively participating in the market, FIIs are experiencing a net outflow.

Year-to-Date Performance

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For the year so far, FIIs have been net sellers of shares worth Rs 2.25 lakh crore and DIIs net bought shares worth Rs 2.79 lakh crore. This significant disparity in investment trends highlights the varying market sentiments between foreign and domestic investors.

Market Performance

At close, the Sensex was down 982.71 points or 1.27 percent at 76,681.29, and the Nifty was down 275.10 points or 1.14 percent at 23,897.95. This decline in market indices reflects the ongoing corrective phase amid weak cues.

Market Analysis

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Ajit Mishra, SVP of Research at Religare Broking, attributes the market's decline to the recent spike in crude oil prices and the uncertainty surrounding US-Iran negotiations. Additionally, the disappointing earnings outlook from IT major Infosys triggered a sharp sell-off in the IT pack, further dragging the indices lower. Mishra notes that the Nifty slipping below its crucial support of 23,900, coinciding with the 20 DEMA, may result in a near-term negative bias. The next support level is expected to be around 23,500.

Traders are advised to adopt a selective approach, focus on stock-specific opportunities, and keep position sizes in check, according to Mishra. A rebound in the market is expected to face selling pressure unless supported by easing crude prices and improved global cues.