Despite denials by Adani group of fresh allegations labelled by Organised Crime and Corruption Reporting Project (OCCRP), Adani group shares witnessed sell off pressure during early morning deals. All Adani group stocks slipped into the red zone within a few minutes of the stock market’s opening bell today.
FIIs’ Selling Amidst Global Cues
Foreign institutional investors (FIIs) have emerged as net sellers in August, offloading ₹2,373 crore in Indian equities on the last day of the month, driven by weak global cues. Despite positive global cues, Nifty failed to reclaim the short-term moving average i.e., 20 EMA, forming a long negative candle on the daily chart.
Outflow and Inflow Trends
As per the NSE data, FIIs cumulatively bought ₹47,666 crore of Indian equities, while they sold ₹50,639.21 crore, resulting in an outflow of ₹2,973.10 crore. Meanwhile, domestic institutional investors (DIIs) infused ₹16,236.73 crore and offloaded ₹11,853.97 crore, registering an inflow of ₹4,382.76 crore.
Market Performance Snapshot
Frontline indices Sensex and Nifty ended in the negative territory lower on the month’s last trading session, snapping a five-month winning streak. Sensex ended with a loss of 256 points, or 0.39 per cent, at 64,831.41, while the Nifty ended the day at 19,253.80, down 94 points, or 0.48 per cent.
Sector-wise Trends
The domestically focused small-caps and mid-caps continued to outperform the blue-chips, driven by strong retail inflows. The BSE Midcap index closed 0.02 per cent lower at 31,200.60 after hitting its fresh record high of 31,352.15 during the session. The Smallcap index ended with a gain of 0.79 per cent at 37,143.67 after hitting its record high of 37,197.2 during the session.
August Performance Overview
The Nifty has lost 2.53 per cent in August after gaining 14.16 per cent from March to July, while the Sensex dropped 2.55 per cent in August after rising 12.83 per cent in the previous five months. Overall, for the month of August, Nifty closed lower with a loss of -2 per cent. Broader market outperformed with the Nifty midcap 100 and Nifty smallcap 100 up more than 3-4 per cent each for the month of August.
Market Outlook
The benchmark is likely to remain in consolidation mode due to moderation in foreign inflows after a sharp uptick over the last five months.
Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consider consulting a financial professional before engaging in algorithmic trading.