FPI sale for October hits record 80,000 crores

BOMBAI: With foreign funds With net sales of over Rs 80,000 crore so far in the month and amid indications of increased sales in the domestic market, major indices are struggling to sustain at higher levels even on an intraday basis. To add to the bearish sentiment on Dalal Streetmajor player in the global financial sector Goldman Sachs On Wednesday, India’s rating was lowered from overweight to neutral, which could lead to further FII salemarket participants said.
On Wednesday, the sensex opened at 79,921 points, down about 300 points on the day, then rebounded to an intraday high of 80,646 points, but then, as foreign fund selling intensified, it entered negative territory and closed at 80,082, down 139 points. A similar trend has been observed in the market in recent days, according to exchange data.

According to Vinod Nair, head of research at Geojit Financial Services, investor sentiment has turned sluggish due to weak corporate profits and knee-jerk reaction by foreign funds. Nair pointed out that mid- and small-cap stocks are, however, seeing cheap buying after the recent decline. The sustainability of these momentum-driven purchases, however, remains uncertain, he said.
So far in October, foreign portfolio investors have net sold Indian stocks worth a little over Rs 80,000 crore.