FIIs selling impact on 4th Oct 2024?
The selling activity by Foreign Institutional Investors (FIIs) has had a significant negative impact on the Indian stock markets, including today’s decline in the Sensex. Here’s a detailed breakdown of the FII impact:
- Market Downward Pressure: FIIs have been consistent sellers in the Indian equity markets for most of 2024. As of October 1, FIIs offloaded Indian stocks worth ₹5,579 crore. Over the past few months, this trend has intensified, with significant outflows in multiple months, which creates downward pressure on the markets. FII outflows indicate that foreign investors are reallocating their funds to other markets, such as China and Hong Kong, which are seen as having more favorable valuations.
- Sector-Wide Decline: Large-cap stocks, which are heavily influenced by FII activity, have been particularly impacted. Sectors like real estate, automobiles, and banking saw some of the largest losses. FII selling impacts liquidity and investor sentiment, leading to more cautious trading by domestic players, which in turn drags the entire market down.
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