Weekly Market Review: Nifty Falls 2% As FIIs Dump Shares

It was a bad week for the markets, which witnessed a second successive week of losses as Foreign Portfolio Investors dumped shares. Had it not been for some solid buying from domestic institutions, we would have seen further losses in the markets.

This week the IT index was up by 2.26% expectation of growth backed by PM Mr. Narendra Modi's digital India stance post the demonetization.

FIIs continue their selling

FII continued their selling in the cash market. The total selling for the month of December has already reached Rs 3,682.61 Crores. The sell figures for the month of November were Rs 19,981 crores in the cash segment. In the last trading week, FIIs have sold shares worth Rs. 4476.83 Cr and DII bought shares worth Rs 3,967.98 Cr, combined sell of Rs. 508.90 Cr for this week.

In Index Options, last trading week, FII have sold 39617 contracts. Pro have sold 118698 contracts. Combined, there has been a net sell of 158315 contracts.

In Index Futures, last trading week, FII have sold 16142 contracts. Pro have bought 16650 contracts. Combined, there has been a net buy of 508 contracts.

International Markets

In the developed markets such as S&P 500 in America and DAX in Germany have traded more or less flat in the week gone by. However, the holiday seasons have resulted in low volumes worldwide and a muted movement.

On the emerging market front, we have seen continued selling in the entire week. MSCI Emerging markets Index, a good representation of the emerging market pack, has broken its major support of 848 and after making a low of 840.27 closed at 841.60. This signals the prevailing weakness in the emerging markets.

With inputs from equity research firm, Dynamic Levels