Despite the crude oil prices steeped to $84 per barrel, the Foreign institutional investors kept on selling even the domestic equity benchmarks Nifty and Sensex closed higher on Friday, October 6, 2023. According to the reports, the FIIs offloaded Rs90 crore in Indian equities while DIIs (Domestic institutional investors) invested Rs 783b.25 crore in Indian stocks, as net buyers again on Friday. NSE data showed that Foreign institutional investors cumulatively purchased Indian equities for Rs 6727.34 crore and in turn, sold equities for Rs 6917.63 crore resulting in an outflow of more than Rs90 crore. We have a lot more to unravel about Foreign institutional investors’s cumulative buy and sell, in the article. Stick with this page and go through it till the end.
According to the NSE data, Domestic institutional investors bought for Rs 7150.57 crore and sold equities for Rs 6367.32 crore, resulting in an inflow of Rs 783.25 crore. While Foreign institutional investors registered an outflow of Rs90 crore. The MPC (Monetary Policy Committee) of the Reserve Bank of India (RBI) kept a status quo on policy stance in line with Street estimates and repo rates. The rate-setting panel unanimously chose to keep the repo rate same at 6.5 percent on October 6. The RBI also maintained its policy stance as the “withdrawal of accommodation” with five MPC members voting in favor of this, out of six.
The head of research at Geojit Financial Services, Vinod Nair said that the RBI maintained a hawkish stance on liquidity as they consider OMO to contain liquidity in the system to lead 10-year yield inching higher. He kept on saying that the central bank has become more realistic about its policy approach. Furthermore, the marker is reacting positively to the growth rate and a steeper in crude oil prices.
Vinod Nair of Geojit Financial Services said, “The risk of higher inflation led the RBI to become more realistic in their policy approach. The central bank maintained a hawkish tone on liquidity management, as they may consider OMO to contain liquidity in the system, which led to India’s 10-year yield inching higher. The market, however, reacted positively, as the status quo on the growth rate and a further drop in oil prices provided near-term support.” For the second consecutive day, the Indian equities rallied on the RBI’s monetary policy’s status quo along with its stance on policies. Stay tuned to this site.