Indian Stock Markets Face Challenges Amid FII Selling
The Indian stock markets are experiencing a tough time as both major indices opened flat on Friday. The Nifty 50 index started at 24,418.05 points, gaining a slight 18 points or 0.08%, while the BSE Sensex rose by 0.15% or 122 points to 80,187.34.
Market Trends and Expert Insights
Experts have noted that the ‘Buy on Dips’ strategy is ineffective due to continuous selling by Foreign Institutional Investors (FIIs). The FIIs have sold Rs 98,085 crores this month up to the 24th, contributing to a bearish market sentiment. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that weak Q2 results and downward revisions in FY25 earnings estimates have further dampened market sentiment. However, he pointed out that mutual fund inflows are helping Domestic Institutional Investors (DIIs) manage the FII selling pressure.
Sectoral Performance
In sectoral indices, Nifty FMCG was the top performer with a 1% rise. Nifty BANK and Nifty continued to decline, while Nifty IT saw a marginal gain of 0.09%. Among the Nifty 50, Axis Bank, ITC, HCL Tech, ICICI Bank, and Sun Pharma were top gainers, whereas IndusInd Bank, NTPC, L&T, and Shriram Finance were top losers.
Quarterly Results and Global Market Performance
Major companies like Coal India, Bharat Electronics, JSW Steel, DLF, and BPCL are set to announce their quarterly results today. In other Asian markets, Japan’s Nikkei 225 fell by 1%, Hong Kong’s Hang Seng rose by over 1%, and South Korea’s KOSPI and Taiwan’s Weighted index increased by 0.5%. Indonesia’s Jakarta Composite saw a slight rise of 0.2%.
Doubts Revealed
FIIs -: FIIs stands for Foreign Institutional Investors. These are investors or investment companies from outside India who invest in the Indian stock markets.
Nifty 50 -: Nifty 50 is a stock market index in India that represents the performance of 50 major companies listed on the National Stock Exchange (NSE).
BSE Sensex -: BSE Sensex is another stock market index in India, representing 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE).
Buy on Dips -: Buy on Dips is a strategy where investors buy stocks when their prices fall, expecting them to rise again later.
Rs 98,085 crores -: Rs 98,085 crores is a large amount of money, specifically 98,085 crore rupees, which is the amount FIIs have sold in the Indian stock market this month.
Q2 results -: Q2 results refer to the financial performance of companies during the second quarter of the financial year, which is from July to September in India.
FY25 earnings estimates -: FY25 earnings estimates are predictions about how much money companies will earn in the financial year 2024-2025.
DIIs -: DIIs stands for Domestic Institutional Investors. These are investment companies or investors within India who invest in the Indian stock markets.
Nifty FMCG -: Nifty FMCG is a sectoral index that tracks the performance of companies in the Fast-Moving Consumer Goods (FMCG) sector, like food, beverages, and household products.
Axis Bank and ITC -: Axis Bank is a major private sector bank in India, and ITC is a large Indian company known for its products like cigarettes, food, and personal care items.