Foreign institutional investors remained net sellers for a tenth straight week, though the outflow moderated sharply to Rs 2,697 crore from Rs 8,991 crore in the previous week, according to IANS reporting on the weekly market data. Domestic institutional investors stayed net buyers for a tenth consecutive week, purchasing Rs 10,942 crore and absorbing most of the foreign selling.

Source: IANS via NewKerala

Month-to-date, foreign investors have sold a net Rs 51,466 crore, against domestic buying of Rs 59,110 crore, the report said. Analysts cited by IANS said the moderation in foreign selling offers some near-term comfort, but elevated crude prices and sharp weakness in the broader market keep downside risk alive.

The benchmarks fell in all four sessions of the truncated week. The Nifty touched an intra-week low of 22,372 on Friday before closing 2.4 per cent lower at 22,600, while the Sensex shed 1,575 points during the week to close at 73,123.83, according to HDFC Sky's weekly market wrap. The sell-off erased about Rs 16.1 lakh crore — yaani roughly Rs 16 lakh crore — in market value from BSE-listed companies.

Source: HDFC Sky

Broader markets were hit harder than the benchmarks: the Nifty Midcap 100 fell 5.6 per cent and the Nifty Smallcap 100 fell 7.3 per cent, IANS reported. Information technology was described as the lone pocket of resilience, while rate-sensitive sectors such as consumer durables, metals and realty saw the heaviest selling.

Oil added to the pressure. Brent crude rose 3.1 per cent on Friday to close at $116.72 a barrel, its highest since April 29, and gained 6.2 per cent for the week, while US West Texas Intermediate added 3.8 per cent to settle at $103.27, according to IANS. Analysts warned sustained high crude could raise energy and transport costs and weigh on consumption.

Source: IANS via NewKerala

Ahead, market participants are watching the US Federal Reserve's FOMC decision, the Bank of Japan's rate decision and quarterly earnings, IANS reported.