Foreign institutional inventors (FII) sold shares worth a net Rs 158.01 crore while domestic institutional investors (DII) bought shares worth a net Rs 501.63 crore on Friday, December 9, 2022, according to the data available on NSE. For the month till December 9, FII sold shares worth a net Rs 5,657.14 crore while DII bought shares worth a net Rs 7,089.40 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.
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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.
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“In November FPIs invested Rs 36,238 crores in Indian equities. They were big buyers of financial services. Buying was witnessed in segments like capital goods, autos and auto components. FPIs were sellers in consumer durables, textiles, power and telecom. Even though FPIs continued to buy in early December too, they turned sellers in recent days. The decline in the dollar index to below 105 was the major factor that triggered inflows. There is a trend of money moving into cheaper markets like China and South Korea where the valuations are compelling now. Even though India will continue to attract foreign capital, the high valuations in India will be a deterrent. Going forward, in the near term, FPIs are likely to make only modest purchases in performing sectors and may continue to sell and book profits in sectors where they are sitting on big profits. More money is likely to move into cheaper markets,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.