FIIs: Market Watch: Will domestic players be able to absorb more FII selling pressure? | The Economic Times Podcast

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Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets surrendered early gains to end lower for the third straight day as risk appetite was weak amid geopolitical tensions and ahead of the release of the minutes of the US Fed’s last meeting.

Investors worldwide await fresh cues regarding the Fed’s plans to raise interest rates and shrink its balance sheet.

Higher US interest rates have been a key factor prompting FIIs to exit Indian stocks at a ferocious pace, with these investors offloading over Rs 2 lakh crore worth of equities since October.

Losses in technology stocks, including index heavyweights such as TCS, dragged down headline indexes, even as firm buying in banking stocks lent some support.

After opening on a positive note, the 30-share pack Sensex shed early gains to end 303.35 points or 0.56 per cent lower at 53,749.26.

Its broader peer, Nifty50, lost 99 points but managed to close above the 16,000 mark. Broader markets also suffered deep cuts, with the Nifty midcap and small-cap index falling 2.5 per cent and 3.46 per cent, respectively.

18 of the 30 stocks on the BSE Sensex fell, with Asian Paints slumping 8 per cent.

Tech Mahindra and TCS lost 4 per cent each. NTPC rose 4 per cent, followed by Kotak and Bharti Airtel which gained 1 per cent each.

12 stocks touched 52-week highs while 148 hit 52-week lows.

We have Arijit Malakar from Ashika Stock Broking to share his views on the action and the road ahead:

Welcome to the show sir:

1. Why were markets unable to hold onto gains today? Do you see more pain in store for headline indices?

2. FII sales of equities since October have now crossed Rs 2 lakh crore. Will domestic players be able to absorb more FII selling pressure?

We also caught up with Brijesh Bhatia from Equitymaster to decode the technical charts for you.

1. The Nifty50 dropped below the 16,050 level. What do the technical charts suggest about it?

2. The Bank Nifty bucked the trend and notched up gains today. What is the technical outlook?

Asian markets ended mixed. Major European markets were mostly lower in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!