FIIs Turn Net Buyers of Indian Equities, Reversing the Previous Trend

The stock market recorded a huge leap on March 18. This happened because foreign institutional investors (FIIs) covered their short positions and began buying stocks. This reversal followed a month of consistent selling by foreign investors, leading to notable growth in key indices that reached their highest levels in more than a month.

Foreign Investor Action

As per industry data, 101 stocks had short covering by foreign investors. Shares of Reliance Industries reported the highest activity. Foreign investors enhanced their shareholding in Reliance. This was the highest among all stocks trading in India’s futures and options market.

Expert Opinion

Industry experts believe that the Indian stock market is gradually approaching the end of a correction period. As investors move some positions for the next trading cycle, the market is expected to become more positive. However, they have also cautioned investors against becoming overly optimistic by relying on just a single day’s data.

Market Resilience

Even with foreign investors selling, The Indian stock market has been performing well in March. As per news reports, a 500-point jump in the Nifty can occur in the future, with profit-taking happening at around 23,500-24,100 points.

Buying and Selling

On March 18, foreign investors purchased shares worth ₹1,462.96 crore. They acquired shares worth ₹15,450.39 crore. Besides, they sold shares worth ₹13,987.43 crore.

Market Performance

On March 18, banking, metal, and auto stocks recorded a notable surge. This led to a buying frenzy among people. The Nifty and Sensex also reached a month high. This was their highest single-day rise in more than a month.

Index Movements

On Wednesday, the Nifty jumped 325 points, or 1.45 percent, to 22,834. The Sensex rose 1,131 points, or 1.53 percent, to 75,301. Both indices briefly crossed a key resistance level. This level is called the 21-day EMA.

As of 11.18 AM, the Nifty 50 was uo 0.27% at 22,895.95 points, while the BSE Sensex was up 0.21% at 75,460.29 points.

Conclusion

The market’s surge on Wednesday signals a potential movement in foreign investor’s sentiment. Short covering led to a significant rally and pushed the indices to new highs. News reports suggest continued market optimism, despite cautioning against over-interpretation of single-day data. While future trends are yet to unfold, today’s activity mirrors the strong resilience of the stock market, hinting at possible growth in the future.

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