FIIs Continued To Be Net Cash Buyers Of Rs104 Bn; FPI flows are expected to remain volatile; The Nifty-50 Index and Sensex each lost around 0.75% each in the past week
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, May 23, 2025: The amount/reason for outflow/inflow (1st May to 22nd May 2025): FIIs continued to be net cash buyers to the tune of Rs. 10,397.02 crores, to date in May’25.
The Q4FY25 earnings season remains uninspiring, with aggregate earnings growth of the Nifty-50 Index at 5.8% yoy till now. Meanwhile, global markets ended mixed. Moody’s downgrade of the US credit outlook and renewed fiscal concerns in major economies, coupled with mixed economic cues from China, kept the markets on edge. FPI flows are expected to remain volatile.
FPI flows in May’25 till date were positive for all key emerging markets (except Thailand). India, Brazil, Indonesia, Malaysia, Philippines, S.Korea, Taiwan, and Vietnam witnessed inflows of US$2,253, US$1742 mn, US$210 mn, US$486 mn, US$5 mn, US$722 mn, US$8,117 mn, and US$145 mn, respectively.
The Nifty-50 Index and Sensex each lost around 0.75% each in the past week. While midcap (-0.45%) and small cap (+1%) index outperformed during the same period. Global equities remained mix on expectations of a steady ramp-down of US tariffs. Moody’s downgrade of the US credit outlook and renewed fiscal concerns in major economies, coupled with mixed economic cues from China, kept the markets on edge.
Sector-wise, most indices ended in red with Consumer Durable (-1.9%), IT (-0.9%), Auto (-1.7%), FMCG (-0.8%), Oil and gas (-0.6%) and Power (-0.2%) sectors as major sectoral losers. While sectors including Capital goods (+0.5%), Real Estate (+2.4%) and Metal (+0.6%) reported gains for the week. Bank Nifty ended flat. Within the Nifty, BEL (+5.9%), HDFC Life (+3.9%) and Tata Steel (+3.4) gained the most, while Grasim (-4.6%), M&M (-3.9%) and Maruti Suzuki (-3.9%) lost the most. The Q4FY25 earnings season remains uninspiring, with aggregate earnings growth of the Nifty-50 Index at 5.8% yoy till now. Both DIIs and FIIs were net buyers during the week.
In International, the 30-year Treasury bond yield touched a high of 5.161%, its highest level since October 2023. The rate on the 10-year Treasury note at one point breached 4.6%. UK retail sales jump by 1.2% in April — beating expectations. Japan’s core inflation climbs to 3.5%, highest in more than 2 years.
