FIIs Were Net Sellers on Wednesday Despite Numbers Suggesting Otherwise — Explained
Key Takeaways
- •Indian equities declined for a third consecutive session, with the Nifty 50 closing below 24,000 for the first time since July 29.
- •The Nifty 50 continues to trade in a range, with support around 23,800 and resistance between 24,200 and 24,400.
- •Exchange FII figures are provisional cash-market data that are later reconciled with actual settlement figures, which can change an apparent net-buying day into a net-selling one.
- •Tracking both cash-market and derivatives flows gives a fuller picture of foreign institutional positioning than the cash figure alone.
Indian equities ended lower for a third consecutive session on Wednesday, with the Nifty 50 index closing below the 24,000 mark for the first time since July 29. The index continues to trade within a range, with support around 23,800 on the downside and resistance between 24,200 and 24,400 on the upside.
The headline FII figure can be misleading because exchanges report provisional cash-market data, which is later reconciled with actual settlement figures; such revisions can flip an apparent net-buying day into a net-selling one, as appears to have happened here. Foreign institutional flows are a closely tracked driver of Indian market direction, and tracking both the cash market and derivatives segment gives a fuller picture of positioning than the single cash figure alone.
Source: CNBC-TV18
