FBI in October: For the second month in a row, foreign investors witnessed a sell-off in the Indian market. Foreign portfolio investors have withdrawn Rs 7,458 crore from the Indian stock market so far in October. Earlier in September, FBIs recovered a total of Rs 7624 crore. Foreign investors play an important role in Indian market sentiment. The Nifty ended last week down 0.74 percent at 17185. Bank Nifty closed down 0.33 percent at 39305.
The central bank’s aggressive stance is to reduce liquidity
IIFL Securities Vice President Anuj Gupta said geopolitical tensions and global economic slowdown are having a negative impact on market sentiments. The Federal Reserve’s aggressive stance on interest rate hikes will continue for now, putting pressure on liquidity. It will also have an impact on economic recession.
FPIs have withdrawn 1.76 lakh crore so far
Foreign portfolio investors (FPIs) have withdrawn Rs 1.76 lakh crore so far in 2022. Sreekanth Chauhan, head of equity research at Kotak Securities, said the FBI inflows will remain volatile in the coming months due to factors such as the geopolitical situation and inflation. Earlier, FBIs had net investment of Rs 51,200 crore in August and around Rs 5,000 crore in July. Prior to July, foreign investors had been net sellers for nine consecutive months since October last year.
The dollar will remain strong in the near future
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said the recent exodus of FPIs could hurt global economic growth due to concerns about tightening monetary policy by central banks in the US and other countries. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said the continued appreciation of the dollar was the main reason for the FBI sell-off, and the dollar is expected to strengthen in the near future.
The mood of the market will be determined by the quarterly results
The direction of domestic equity markets will be determined by quarterly results and global trends announced this week. Apart from this, the flow of foreign capital will also play an important role in determining the direction of the market. Analysts have expressed this opinion. Fluctuations in the rupee and trends in international oil benchmark Brent crude will affect business, he said. Santosh Meena, head of research at Swastika Investments Ltd said, “The market will be looking at Q2 results and global trends. Second quarter results of several financial institutions and cement companies are out this week. There is a lot of volatility in the global markets, which will affect our market as well.
Technically the market sentiment is positive
IIFL Securities expert Anuj Gupta said that the Nifty this week has support at 16800, followed by second support at 16550 level. The first barrier is at 17350 and the second at 17700 levels. Market sentiment will be positive due to strong quarterly results. Technically, if Nifty breaks 17350, it will move towards 17700. If Bank Nifty is above 39800 it will move towards 40500. Technically, the trend for this week is positive.
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