Foreign institutional investors (FII) offloaded shares worth net Rs 1877.84 crore, while domestic institutional investors (DII) sold shares worth net Rs 2.23 crore on August 2, 2023, according to the provisional data available on the NSE.
For the month till August 2, 2023, FIIs sold shares worth net Rs 1,970.69 crore while DIIs bought shares worth net Rs 1,033.46 crore. In the month of July, FIIs bought shares worth net Rs 13,922.01 crore while DIIs sold equities worth net Rs 1,184.33 crore.
“Domestic equities saw downward pressure following the global peers amid weak economic data and a downgrade in US sovereign credit rating. Nifty opened lower and witnessed profit booking throughout the session to close with a loss of 219 points (-1.1%) at 19514. India’s VIX sharply rose by 10% indicating volatility in the market. The broader market too faced the burnt with Nifty midcap 100 and small cap 100 down more than 1%. All sectors ended in red with PSU Bank, Metals, and Auto being the top losers. Globally markets including Indian Equities came under pressure after Fitch Ratings downgraded the U.S. sovereign credit rating from AAA to +AA. Further, weak economic data from the United States, Eurozone, and China dampened investors’ sentiments,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
“However, strong GST collection in the month of July and a surge in domestic core output data kept the downside in check. Going ahead, markets could remain subdued given the gloomy global environment. Stock-specific action is likely to continue in the market with the ongoing result season,” Siddhartha Khemka added.
On Wednesday, the benchmark indices NSE Nifty 50 and BSE Sensex tanked over 1% and ended in the red zone. The NSE Nifty 50 sank 207 points or 1.05% to 19,526.55, and the 30-share Sensex tanked 676.53 points or 1.02% to 65,782.78. Among the broader market indices- Nifty Next 50 sank 1.35%, Nifty 100 fell 1.08%, Nifty Midcap 50 plunged 1.40%, and Nifty Smallcap 100 sank 1.58%. The volatility index, India VIX soared 9.67%. In sectoral indices, Bank Nifty tumbled 596.80 points or 1.31% to 44,995.70, Nifty Auto plunged 1.66%, Nifty PSU Bank sank 2.61% and Nifty IT fell 0.81%. The top gainers on Nifty 50 were Divis Laboratories, Nestle India, Hindustan Unilever, Asian Paints and Tech Mahindra while the losers were Hero Motocorp, Tata Steel, Tata Motors, Bajaj Finserv and NTPC.
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.