MUMBAI: Foreign funds were again at the forefront of Tuesday’s sell-off at the market with a net outflow figure of Rs 3,115 crore. In the last seven trading sessions foreign portfolio investors (FPIs) have net taken out a little over Rs 25,000 crore (about $3 billion) from the Indian market, CDSL and BSE data showed.
This is one of the sharpest net outflows by FPIs in recent months.This could only be compared with the outflows we had seen during the beginning of the Covid pandemic in March 2020, official data showed.
According to Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, the domestic market opened positive but soon drifted into red witnessing huge sell-off amid profit booking. “PSU banks, railways (and) power utilities were some of the sectors which saw profit-booking after witnessing sharp run-up in the recent past. Global sentiments turned cautious after Fitch Group’s statement that South Asian economies would be most affected, amid rising hostilities in the Red Sea due to Houthi attacks and India’s economic forecast faces a significant risk (due to) a prolonged spell of disruptions.”
Among the sensex stocks, other than HDFC Bank that contributed nearly a third of the index’s drop, Reliance Industries, Infosys and SBI were leading contributors to the sensex’s slide. On the other hand, strong buying in ICICI Bank, L&T and Sun Pharma helped cushion the crash in the index, BSE data showed.
Technically the market is showing weakness on the charts. According to Sheersham Gupta, Director & Senior Technical Analyst, Rupeezy, nifty, that closed 330 points down at 21,239 points, has formed a huge bearish engulfing candlestick. “It broke the crucial support of 21,300 points with a head and shoulder pattern. Now the next support lies at 21,000 points, coinciding with the 50-day moving average (DMA).” If this support is broken, nifty may see a big correction as there lies no major support, Gupta said.
This is one of the sharpest net outflows by FPIs in recent months.This could only be compared with the outflows we had seen during the beginning of the Covid pandemic in March 2020, official data showed.
According to Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, the domestic market opened positive but soon drifted into red witnessing huge sell-off amid profit booking. “PSU banks, railways (and) power utilities were some of the sectors which saw profit-booking after witnessing sharp run-up in the recent past. Global sentiments turned cautious after Fitch Group’s statement that South Asian economies would be most affected, amid rising hostilities in the Red Sea due to Houthi attacks and India’s economic forecast faces a significant risk (due to) a prolonged spell of disruptions.”
Among the sensex stocks, other than HDFC Bank that contributed nearly a third of the index’s drop, Reliance Industries, Infosys and SBI were leading contributors to the sensex’s slide. On the other hand, strong buying in ICICI Bank, L&T and Sun Pharma helped cushion the crash in the index, BSE data showed.
Technically the market is showing weakness on the charts. According to Sheersham Gupta, Director & Senior Technical Analyst, Rupeezy, nifty, that closed 330 points down at 21,239 points, has formed a huge bearish engulfing candlestick. “It broke the crucial support of 21,300 points with a head and shoulder pattern. Now the next support lies at 21,000 points, coinciding with the 50-day moving average (DMA).” If this support is broken, nifty may see a big correction as there lies no major support, Gupta said.