Foreign institutional inventors (FII) sold shares worth a net Rs 138.81 crore while domestic institutional investors (DII) bought shares worth a net Rs 695.60 crore on Monday, December 12, 2022, according to the data available on NSE. For the month till December 12, FII sold shares worth a net Rs 5,795.95 crore while DII bought shares worth a net Rs 7,785.00 crore. In the month of November, FIIs purchased shares worth a net of Rs 22,546.34 crore while DIIs offloaded equities worth a net of Rs 6,301.32 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. The investment decisions of both FIIs and DIIs are impacted by political and economic trends. Additionally, both types of investors — foreign institutional investors (FIIs) and domestic institutional investors (DIIs) — can impact the economy’s net investment flows.
The CPI inflation in November 2022 fell to 11-month low of 5.88%, compared to 6.77% in October. The inflation, which is now below the RBI’s 2-6% tolerance band, will come as huge relief to the central bank. Since May this year, RBI has hiked interest rates by 225 basis points to combat rising inflation.
“While the CPI at 5.88% has beaten market expectations by being lower than forecast, the decline in IIP is a bigger cause for concern as it could indicate poor demand offtake leading to slower GDP growth in the coming quarters. We should observe the trend of both CPI and IIP over the next few months to get clear signals,” said Raghvendra Nath, Managing Director – Ladderup Wealth Management Private Limited.