Stories
Indian Markets Brace for Volatility Amidst FPI Sell-Off and Rising Crude Prices
- •Indian equity markets extended their losing streak to seven consecutive weeks, the longest since May 2020, with the Nifty 50 dropping 0.88 percent.
- •Foreign Portfolio Investors (FPIs) continued their selling spree for a fifth straight week, offloading Rs 11,490.03 crore in equities, bringing total outflows for the month to Rs 18,530.97 crore.
- •Crude oil prices rebounded, with Brent crude above $107 a barrel, gaining over 18 percent in the past month and 37 percent over three months, adding to market concerns.
- •US Treasury yields rallied to multi-year highs, with the 10-year note touching above 5.2 percent and the 30-year climbing past 5.5 percent, its highest since 2004.
- •Despite overall bearishness, market breadth shows signs of improvement with positive divergence in diffusion indicators, suggesting potential for a rebound if FIIs cover short positions.
Key Questions Answered
Indian equity markets extended their losing streak to seven consecutive weeks as the Nifty 50 slipped 0.88 percent to close at 23,140.5. This downward pressure was driven by continuous FII selling, surging crude oil prices with Brent crude rebounding above $107 a barrel, and rising US Treasury yields reaching multi-year highs.
Foreign portfolio investors (FPIs) continued a heavy selling spree for the fifth consecutive week, offloading Rs 11,490.03 crore in equities and bringing total September outflows to Rs 18,530.97 crore. Furthermore, the FII Net Index Futures Position reached an all-time low of -31,20,001, highlighting an extremely bearish sentiment among institutional players.
During the volatile week, Nifty Realty topped the sectoral gainers with a 3 percent rise, while Nifty Consumer Durables, Nifty Pharma, and Nifty FMCG each advanced around 1 percent. Conversely, Nifty IT led the declines by falling 2.4 percent, followed by Nifty Financial Services down 1.6 percent and Nifty Energy slipping nearly 1 percent.
