Foreign institutional investors (FII) sold shares worth a net Rs 1218.14 crore while domestic institutional investors (DII) bought shares worth a net Rs 1203.09 crore on Monday, February 6, 2023, according to the data available on NSE. For the month till February 6, FIIs sold shares worth a net Rs 3,430.72 while DIIs bought shares worth a net Rs 5,368.66 crore. In the month of January, FIIs sold shares worth a net of Rs 41,464.73 crore while DIIs purchased equities worth a net of Rs 33,411.85 crore.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, domestic institutional investors (DII), as the name suggests, invest in the country they’re living in. Political and economic trends impact the investment decisions of both FIIs and DIIs. Additionally, both types of investors — foreign institutional investors (FIIs) and domestic institutional investors (DIIs) — can impact the economy’s net investment flows.
The domestic equity indices ended the previous session on a negative note with BSE Sensex falling 334.98 pts or 0.55% to 60,506.90 and NSE Nifty 50 closing 89.45 pts or 0.50 pts lower at 17,764.60.
“There are huge uncertainties in the global equity markets now. The biggest uncertainty pertains to how the U S economy is likely to perform this year. The surprise 517000 job number in the US in January indicates a tight labour market and a strong economy. This means the Fed might continue to raise interest rates, perhaps twice more by 25 bp, this year. This has pushed up the bond yields with the 10-year at 3.62% now. This is negative for capital flows to emerging markets. Therefore, FIIs might continue to sell in India. In 2023, so far, FIIs were buyers only on 3 days and sold on all other trading days. Sustained FII selling and the Adani crisis have temporarily impacted sentiments. Investors may wait and watch for the dust to settle. Meanwhile, high-quality stocks, particularly those which have declared good results, maybe slowly accumulated,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.