Foreign institutional investors (FII) offloaded shares worth net Rs 3,073.28 crore, while domestic institutional investors (DII) added shares worth net Rs 500.35 crore on August 11, 2023, according to the provisional data available on the NSE.
For the month till August 11, 2023, FIIs sold shares worth net Rs 4,546.53 crore while DIIs bought shares worth net Rs 5,353.56 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.
“After three months of sustained buying with a cumulative investment of Rs 1,37,603 crores, FPIs have turned sellers in India. In August through 11th FPIs have sold stocks to the tune of Rs 7,543 crores. Strength in the dollar index and the US 10-year bond yield remaining well above 4 % is a short-term negative for FPI flows to emerging markets like India. FPIs continue to be buyers in financials, capital goods and financials and also in IT selectively. A significant trend in the market is that FPI selling is countered by strong DII buying,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“In view of the strong dollar and high US bond yields FPIs may continue to sell in India. Also, since the markets have rallied smartly during the last three months, some profit booking by FPIs would be rational and can be expected,” V K Vijayakumar added.
On Friday, domestic indices ended in the red. The NSE Nifty 50 tanked 114.80 points or 0.59% to 19,428.30 and BSE Sensex sank 363.53 points or 0.56% to 65,322.65. The broader markets also ended in the red, with the Nifty 100, Nifty 200 and Nifty 500 ending lower by 0.5%. Nifty Smallcap fared better, ending lower by 0.18%. In sectoral indices, Bank Nifty tumbled 342.70 points or 0.77% to 44,199.10, Nifty FMCG sank 0.73%, Nifty Pharma sank 1.45%, Nifty Media tanked 1.83% and Nifty IT fell 0.16%, while Nifty PSU Bank soared 1.25%. The top gainers on Nifty 50 were HCL Technologies, Power Grid, Titan Company, Tata Steel and UltraTech Cement while the losers were IndusInd Bank, SBI Life Insurance, UPL, Tata Consumer Products and Asian Paints.
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.