FPIs Inflows Hit 4-Month Low In August - Daily Market Update- Equity 4 Sep 2023 | Globe Capital Market LTD.
FPIs Inflows Hit 4-Month Low In August – Daily Market Update- Equity 4 Sep 2023

After pouring a whopping amount into Indian equities in the past three months, foreign investors have slowed down the pace of inflow to Rs 12,262 crore in August on higher crude oil prices and the resurfacing of inflation risks. This figure includes investment through the primary market and bulk deals, which have been gathering momentum recently. This is the lowest investment in the last four months. Before this investment, FPIs invested over Rs 40,000 crore each in the past three months in Indian equities.

Overview and Outlook

Global Market Update

  • Barring Nasdaq, other US equity markets settled on positive note
  • European equity markets ended flat to negative.
  • Asian equity markets are trading on a positive note
  • GIFT Nifty is up by 21 points (as on 8:30AM), Nifty futures likely to open around 19568 levels.


News highlights from across the globe

  • Asian stocks are trading with modest gains as traders mulled U.S. jobs data that supported optimism the Federal Reserve is nearing the end of its tightening cycle.
  • On Friday, he S&P 500 finished with a small advance ahead of Monday’s U.S. holiday, while notching its best week since June. Tesla Inc. dropped over 5%, while energy shares rallied as oil topped $85 a barrel. The jobs report showed a labour market undergoing a controlled cooling.
  • Brent crude was trading above $88 a barrel and the yield on the 10-year U.S. bond was trading at 4.15%


Important news updates from the domestic front

  • Bharat Electronics is in pact with Israel Aerospace Industries to collaborate on short range air defense systems.
  • IDBI Bank: The Department of Investment and Public Asset Management has invited bids for asset valuers for the bank. The bids are expected to be submitted by Oct. 9. The asset valuer will work closely with transaction adviser and legal adviser. The government is looking to sell 30.48%, while Life Insurance Corp. of India is looking to offload 30.24% of its stake in IDBI Bank, along with the transfer of management control.
  • ONGC board has approved capital restructuring of ONGC Petro additions (OPAL). It includes buyback of convertible debentures of Rs 7,778 crore by ONGC and an investment of Rs 7,000 crore in equity/quasi-equity security of OPaL.
  • Coal India: The state-run miner’s production rose 13.2% year-on-year to 52.3 million tonnes in August 2023. Comparative production for the month surged ahead by 6.1 MTs. Total coal supplies to all consuming sectors shot up by 15.3% to 59 MTs in August 2023. Supplies were up nearly 8 MTs in a single month.
  • Hero MotoCorp sales rose 5.4% year-on-year to 4.89 lakh units in August. Domestic sales rose 4.7% to 4.73 lakh units while exports rose 24.7% to 15,770 units.
  • Eicher Motors motorcycle sales rose 11% year-on-year to 77,583 units helped by new launches such as the Hunter 350. Exports was up by 13% to 8,190 units.
  • Hindalco Industries has entered into a shareholder’s agreement and power purchase agreement with Seven Renewable Power for acquisition of 26% stake in SRPPL for Rs 32.5 lakh. It plans to develop and operate captive power plant to supply 100 MW round-the-clock renewable energy to its smelter located in Odisha.
  • Lemon Tree Hotels has signed a License Agreement for an 80-room property in Dehradun, Uttarakhand under the brand “Lemon Tree Premier”. The hotel is expected to be operational by Q3 of FY25.


Nifty Overview & Outlook

Benchmark Nifty maintained its bullish momentum throughout the session on Friday and settled higher at 19435 levels after adding 181 points to its previous closing values.

Small cap index outperformed the benchmark as it was up by 1.17% while mid cap index performed in line with the benchmark.

All the sectoral indices barring Health care and Pharma index  tracked at NSE settled in green. Amongst them, Nifty Metal index was at the top of the tally gained nearly 3% followed by Nifty Auto, IT,  Oil & Gas and PSU Bank index that settled higher in range 1.12% to 1.65%.

Nifty index formed a bullish candlestick on daily charts. Going ahead, crossover and sustenance above 19500 will open the doors for further up move upto 19650 levels in immediate near term.


Derivatives Overview & Outlook

On Friday, Nifty and Banknifty futures shed around 3.6% & 7.3% of open interest respectively as short covering whereas Finnifty futures added around 4% of open interest as long buildup.

Majority of F&O sectors settled higher on long buildup. Amongst them, Telecom, Power, Metals, Cements and Capital Goods stock witnessed maximum addition of long positions whereas some short buildup was seen among Pharma stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 CE and 19300 PE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 4312 Cr in the cash segment, bought stocks futures worth Rs 2011 Cr and sold index futures worth Rs. 1173 Cr. DIIs were net buyers in the cash segment to the tune of Rs 9570 Cr during the week.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19580-19665; Supports 19410-19320

Banknifty – Resistances 44810-44960; Supports 43250-44040

Finnifty – Resistances 19990-20080; Supports 19690-19550


F&O stocks in ban today:




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