Foreign institutional investors (FII) sold shares worth a net Rs 2902.46 crore while domestic institutional investors (DII) bought shares worth a net Rs 1083.17 crore on Friday, January 6, 2023, according to the data available on NSE. For the month till January 6, FII sold shares worth a net Rs 7,813.44 crore while DII bought shares worth a net Rs 2,756.58 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 452.90 points or 0.75%, settling at 59,900.37 and the NSE Nifty 50 dipped 132.70 points or 0.74% to 17,859.45.
“FPIs have turned sustained sellers in the market. They sold for eleven consecutive days taking the cumulative selling to Rs 14,300 crores. And, the money taken out is being invested in the underperformers of last year like China and Europe, which are doing well now. Clearly, FII money is chasing lower valuations by selling in overvalued markets like India. This is an important trend in near-term FPI activity. If this trend continues it might weaken the Indian market further. However, the selling will not be indiscriminate. In December 2022, FPIs bought in capital goods, FMCG and financial services. Selling was mainly in IT. If the FPI selling continues, it will open up opportunities for investors. FIIs will sell stocks in which they are sitting on profits, like the banking segment. And this segment continues to be strong. Last year, too, selling by FIIs in banks turned out to be opportunities for domestic investors. Globally, the phenomenon of good economic news becoming bad news for markets might continue in the near term. The latest data from the US show increasing job creation and declining jobless claims,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.