FPI outflows near record level ‘93.7k cr’

MUMBAI: Net selling by foreign funds in equities is on track to break the all-time monthly record as the rupee weakened to record lows at regular intervals this month, while the West Asian war continues without any sign of downgrade and rising crude oil prices threaten India’s macro fundamentals.Foreign portfolio investors have raised Rs 93,698 crore from the stock market alone so far this month, combined NSDL and BSE data showed. This is less than Rs 500 crore from the maximum net outflow figure of Rs 94,017 crore recorded in October 2024, NSDL data showed.On average, foreign portfolio investors (FPIs) sold shares worth nearly Rs 7,000 crore on a net basis this month, with five trading days left in the month (markets are closed on March 26 and March 31).FPI netted Rs 5,518 crore from the market on Friday even as the sensex closed 326 points higher, a slight reversal from a brutal session on Thursday, where the index fell by nearly 2,500 points. The Sensex has fallen a little over 6,750 points or 8.3% so far this month, mainly as the war-induced FPI sell-off also weakened the rupee.Similar to previous weeks, Friday’s trading session also saw high volatility, with the Sensex gaining over 1,000 points in early trade only to see strong profit taking. By the close, the index was up just 0.4% at 74,533 points. On a weekly basis, the index is almost unchanged: it closed at 74,563 points last Friday (March 13). On the NSE, the Nifty also showed high volatility and closed at 23,115 points, up 112 points (0.4%).During the day, traders tended to reduce risks ahead of the weekend amid heightened uncertainty, market players said.HDFC Securities’ Nagaraj Shetti said the near-term trend in Nifty remains weak and the current rally could be an opportunity to sell on gains. “If it falls below 22,900 points, the next downside target of 22,500 points may be opened in the short term. However, the immediate resistance is at 23,380 points,” he said.Global stocks fell for a third straight session on concerns that a war with Iran would continue to put upward pressure on oil prices and reignite inflation. On Wall Street, the Dow fell 0.5%, the S&P fell 0.7%, the Nasdaq fell 1%, British and European stocks fell for a third consecutive week, and Latin American stocks fell to a two-month low.