On Wednesday, the Indian stock indices maintained their steady trading pace. Sensex and Nifty were only 0.07 percent lower than the previous closing at the opening bell.
“Now, there are no immediate triggers which can take the market sharply up or down. Investors may wait and watch for new data expected this weekend from the U S. Since the dollar index and the US bond yields remain high, FIIs will not be strong buyers in the market,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the sixth straight month, according to data from the National Securities Depository (NSDL). But the quantum of inflow has slowed in the current month.
FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, Rs 47,148 crore, and Rs 46,618 crore in March, April, May, June, and July, respectively, data showed. In August, they have thus far bought assets worth Rs 7,691 crore with a week still to go.
In the Indian stock markets so far in 2023, foreign investors have invested Rs 130,716 crore. The recent inflow of foreign capital into Indian stocks helped to boost the overall market as the indices have been periodically reaching new peaks. Notably, in the middle of July, the Sensex first crossed the 67,000 threshold. The bull run in Indian stocks was subsequently fueled by a strong global economy, a strong global stock market, and a relatively moderated inflation rate.