Share Market: Due to the war between Iran and Israel and rising prices of crude oil, foreign investors are staying away from the Indian stock market. According to provisional exchange data, foreign investors (FIIs/FPIs) sold Indian shares worth Rs 6030 crore on March 6. However, the fortunate thing was that during this period, domestic investors (DIIs) supported the market by buying shares worth about Rs 6972 crore.

During the trading session on Friday, the last trading day of the week, FIIs bought shares worth Rs 14435 crore, but sold shares worth Rs 20465 crore. Meanwhile, DIIs bought shares worth a total of Rs 19662 crore and sold shares worth Rs 12691 crore. So far this year, foreign investors have sold shares worth Rs 60,364 crore, while DIIs have bought shares worth Rs 1,28,348 crore.

stock market under pressure

Oil prices have reached a 23-month high due to supply concerns amid rising tensions in the Middle East. There is also fear regarding inflation. These concerns reversed all the previous day’s gains in the market on March 6. Due to this, the benchmark indices remained under pressure throughout the session.

Nifty 50 index fell 315 points (1.27 percent) to 24450 and BSE Sensex fell 1097 points (1.37 percent) to 78919. During this period, selling was seen in all sectors except IT. However, the broader market outperformed the benchmarks as the Nifty Midcap and Smallcap 100 indices fell 0.69 per cent and 0.24 per cent respectively.

This is also a challenge for the stock market

Vinod Nair, Head of Research, Geojit Investments, said, “Continued rise in oil prices could impact investor sentiment and adversely impact India’s twin deficits, inflation trajectory and RBI’s monetary stance. He said the rise in US 10-year bond yields and a strong dollar have prompted FIIs to adopt a risk-averse approach to domestic equities.

In fact, when bond yields increase in America, foreign investors start getting better returns there without any risk. In such a situation, they consider it better to withdraw money from risky assets like the Indian stock market and invest it in American bond yields. This is the reason why the rise in US 10-year bond yield and strong dollar index has always been challenging for emerging markets like India.

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Share Market: Foreign institutional investors (FIIs) sold shares worth Rs 6,450 crore on Friday, 30 May. While domestic institutional investors (DIIs) bought shares worth Rs 9,095 crore. This gave the capital market support. During the business session, domestic investors bought shares worth Rs 20,673 crore and sold shares worth Rs 11,577 crore. While foreign investors bought shares worth Rs 44,434 crore and sold shares worth Rs 50,884 crore.

This year so far so much selling

Foreign investors from the Indian stock market sold shares worth Rs 1,21,414 crore so far this year. While domestic investors have bought shares worth Rs 2,75,264 crore. On Friday, the Nifty’s stand remained sluggish. This is the fourth consecutive session of the Nano-range session.

Decline in both Sensex and Nifty

The Nifty fell at 24,751 with the Nifty 50 0.3 percent to close at 24,751 amidst the vigilance of investors and the weak quarterly results of several companies over tariffs and the Sensex closed down by 0.22 percent. Weakness was also seen in the brain market. Both the Nifty Midcap 100 and Smallcap 100 declined by 0.1 percent as there was a selling pressure in the IT, metal and auto sector during the business yesterday.

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Rupee opens stronger: After the ceasefire between India and Pakistan on the border, the positive trend in the market due to reduced tension and the US-China trade deal has added new enthusiasm to the Indian rupee. On Tuesday 13 May, the rupee strengthened 74 paise to 84.62 per dollar against the dollar.

Forex traders say that the frequent interest and purchases of foreign investors in Indian assets have given tremendous support to the local currency. Significantly, after the Pahalgam terror attack on 22 April, India attacked and demolished 9 terrorist bases in Pakistan and its occupied Kashmir on 7 May. After heavy tension between the two countries, India and Pakistan announced a ceasefire on Saturday to stop firing and military action immediately.

Rupee bounced after ceasefire

The rupee opened at 84.70 per dollar in the Interbank Forex Exchange Market. After that, he fell at 84.74 against the dollar. However, it again returned to 84.62 per dollar, which shows a gain of 74 paise against the previous closed price. The rupee closed at 85.36 against the US dollar on the last day of the last week i.e. on Friday.

The foreign exchange market was closed on Monday due to Buddha Purnima. Meanwhile, the dollar index, showing the US dollar position against six major currencies, fell 20 percent to 101.58.

Stock market declining phase

The Indian stock market saw a decline on Tuesday. The BSE Sensex slipped down 902.68 points to 81,527.22 points, while the Nifty slipped 207.15 points to 24,717.55 points. International standard Brent crude fell by 0.22 percent to $ 64.82 per barrel.

According to the stock market data, foreign institutional investors (FIIs) were living on Monday and purely bought shares worth Rs 1,246.48 crore. It is worth noting that the US and China recently informed about the two countries to be agreed between the two countries for the 90-day ban on each other.