Foreign institutional investors (FII) sold shares worth a net Rs 2002.25 crore while domestic institutional investors (DII) bought shares worth a net Rs 1509.95 crore on Friday, January 20, 2023, according to the data available on NSE. For the month till January 22, FII sold shares worth a net Rs 19,880.11 crore while DII bought shares worth a net Rs 16,182.38 crore. In the month of December, FIIs sold shares worth a net of Rs 14,231.09 crore while DIIs purchased equities worth a net of Rs 24,159.13 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 indices concluded the previous session in red with 30-share BSE Sensex falling 236.66 pts or 0.39% to close at 60,621.77 and the Nifty 50 dropped 80.20 pts or 0.44% to 18,027.65.
“The major trend in FPI investment in January is the sustained selling by FIIs, which is a bit surprising early in the year. In January till 21st FPIs have sold equity for Rs 15425 crores (NSDL data). FPIs were big sellers in financials, IT and telecom. They bought significantly only metals and mining. The sustained selling by FPIs is a bit surprising since the dollar index has been steadily declining. The dollar index has declined from the 2022 peak of 114 to around 103 now. Declining dollars is favourable for emerging markets and, therefore, India should have received inflows. But what is happening now is that FPIs are investing heavily in cheaper markets like China, Hong Kong, South Korea and Thailand and they are selling in relatively expensive India,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.