FPI outflow nears record at ‘93.7k cr | India News

MUMBAI: Net selling by foreign funds in the stock market is on track to break an all-time monthly record as the rupee weakened to record lows at regular intervals this month and rising crude oil prices threaten India’s macro fundamentals as the war in West Asia continues with no sign of de-escalation.In the month so far, foreign portfolio investors have withdrawn Rs 93,698 crore from the stock market, combined data from NSDL and BSE showed. This is down by Rs 500 crore from the largest net outflow number recorded in October 2024, at Rs 94,017 crore, NSDL data showed.On average, foreign portfolio investors (FPIs) have sold stocks worth around Rs 7,000 crore in the current month, with five trading sessions remaining in the month (markets are closed on March 26 and March 31).On Friday, FPIs took a net Rs 5,518 crore from the market even as the Sensex closed with a 326-point gain, a marginal reversal from Thursday’s dismal session that saw nearly 2,500 points wiped off the index. In the month to date, the Sensex has lost a little over 6,750 points or 8.3% mainly due to war-induced FPI selling which also weakened the rupee.Like the past few weeks, Friday’s session was also characterized by high volatility and the Sensex rallied above 1,000 points in early trade only to see strong profit booking. The index was up just 0.4% at 74,533 points at the close. On a weekly basis, the index barely moved: it closed at 74,563 points the previous Friday (March 13). On the NSE, the Nifto showed higher volatility and closed up 112 points (0.4%) at 23,115 points.During the day, traders prefer to reduce their risk ahead of the weekend with higher uncertainty, market players said.According to HDFC Securities’ Nagraj Shetty, Nifty’s near-term trend remains weak and the current bounce back could be sold on bullish opportunities. “A weakness below 22,900 points could open the next downside target of 22,500 points in the near term. However, immediate resistance is placed at 23,380 points,” he said.Global shares fell for a third straight session on worries that the Iran war would keep upward pressure on oil prices and revive inflation. On Wall St, the Dow fell 0.5%, the S&P 0.7% and the Nasdaq 1% while British and European equities logged a third straight week of declines and Latin American stocks fell to two-month lows.