Foreign institutional inventors (FII) sold shares worth a net Rs 706.84 crore while domestic institutional investors (DII) purchased shares worth a net Rs 3398.98 crore on Friday, December 23, 2022, according to the data available on NSE. For the month till December 22, FII sold shares worth a net Rs 8,469.53 crore while DII bought shares worth a net Rs 19,096.68 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 domestic indices concluded the previous session in the red territory with the BSE Sensex dropping 980.93 points or 1.61%, settling at 59,845.29, while NSE Nifty 50 dipped 320.55 points or 1.77% to 17,806.80.
“FPIs have turned cautious in recent days. Concerns about Covid spread in China is a negative sentiment and the strong economic data from the US indicate a continuation of the hawkish stance of the Fed which is pushing bond yields up and equities down. Only a reversal of this trend will trigger a rebound in the market. In the first half of December, FPIs were buyers in autos, capital goods, FMCG and real estate stocks. They were sellers in consumer durables, oil and gas, power and financials. FPIs are likely to turn cautious in the near term. Macro data from the US and Covid news will drive FPI flows and the markets in the near term,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.