FIIs pulled out Rs 814 crore from Indian equity markets on Monday while DIIs invested Rs 1,342 crore in the previous trading session.

Indian stock market will remain shut on Tuesday, 13th February on account of a public holiday. Equity, forex and money market will remain closed on account of Mahashivratri.

The S&P BSE Sensex which closed just above its crucial support level of 34,000 bounced back 300 points on Monday. It closed 294 points higher from its previous close to end at 34,300.47.

The Nifty managed to bounce back after 3 percent fall in the previous week on Monday. The index closed 84 points higher at 10,539.

Midcap and Smallcap indices outperformed equity benchmarks, rising over a percent each.

Key sectors which led the rally on D-Street include names like power, realty, and capital goods stocks.

The foreign institutional investors continued to pull out money from Indian equity markets while domestic institutional investors support the markets. FIIs have pulled out close to Rs 5,000 crore from Indian equity markets so far in the month of February.

FIIs pulled out Rs 814 crore from Indian equity markets on Monday while DIIs invested Rs 1,342 crore in the previous trading session.

“FIIs have begun selling again with big sell numbers seen over the last few sessions; the markets seems undecided at the current juncture with no clear direction. We continue to maintain that the indices are overstretched at this point and would not advice entering fresh longs at this juncture,” he said.

One big macro data point which came out post market hours on Monday was retail inflation data that slowed down in January, a good sign for equity markets.

India’s retail inflation marginally slowed to 5.07 percent in January, as prices of fruits, vegetables, and oil prices slightly eased, data released by the Central Statistics Office showed.

Retail inflation, measured by Consumer Price Index (CPI) hit a fresh high, growing 5.2 percent in December, mainly due to hardening housing, fuel, and food prices, while inching towards RBI’s upper tolerance level of inflation at 6 percent.

CPI number for January is in line with the RBI’s estimated inflation at 5.1 percent for the quarter ended March, up from its previous forecast of 4.3-4.7 percent.

Last week, the RBI estimated the retail inflation for 2018-19 in the range of 5.1-5.6 percent during April-September and 4.5-4.6 percent in the second half of the year.

Global Setup:

Asian markets were trading higher thanks to positive handover from Wall Street. Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street’s extended rebound from last week’s steep fall, said a Reuters report.

Australian stocks rose 0.2 percent and South Korea's KOSPI climbed 0.9 percent. Japan's Nikkei added 0.75 percent in morning trade.

Wall Street’s three major indexes rose for the second day overnight as investors regained some confidence after US equities had their biggest weekly drop in two years.

The Dow Jones Industrial Average rose 410.37 points, or 1.7 percent, to 24,601.27, the S&P 500 gained 36.45 points, or 1.39 percent, to 2,656 and the Nasdaq Composite added 107.47 points, or 1.56 percent, to 6,981.96.

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