FIIs divests ₹6,240.5 crore Indian equities; are DIIs shifting to the Indian market?

Despite the fact that the weekly closing values of the domestic equity benchmarks, the Sensex and Nifty 50, were up 1%, foreign institutional investors (FIIs) remained net sellers in Indian markets. Conversely, net purchases were domestic institutional investors, or DIIs.

According to stock exchange data, although DIIs were purchasers for all five sessions this week, with a total investment of ₹8,731.6 crore, FIIs were buyers for three of the five sessions this week, but the total disposal was at ₹6,240.55 crore.

In the meantime, DIIs had an inflow of ₹1,571.00 crore after investing ₹12,165.87 crore and offloading ₹10,594.87 crore.

“The market has been range bound in recent days due to bouts of selling and buying. During the last two days, FIIs sold equity worth ₹6,993 crore in the cash market while DIIs bought equity worth ₹5173 crore,” stated Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Why FIIs is choosing Indian markets?

‘’The trend of FII selling is likely to continue since the 10-year US bond yield is high at 4.24 per cent. The trend of DII buying too is likely to continue since the flows into the DIIs continue to be robust,” claimed Dr. V K Vijayakumar.

The market of the US, the S&P 500, is still at record highs, and the global market structure is still favorable. There are still concerns about pockets of overvaluation in the overall market. The value of banking stocks is reasonable. The analyst believes that RIL is solid.

Global stock indexes were mixed to almost flat on Friday, while US Treasury yields increased and the US currency strengthened. This strengthened the belief that a US Federal Reserve interest rate drop is unlikely to occur anytime soon.

Stock Market status

For the week that concluded on Friday, February 16, the domestic market saw increases as investors continued to place more emphasis on macroeconomic data and fundamentals, with expectations that the US Federal Reserve would begin reducing interest rates in June of this year.

In the midst of encouraging global indications, Friday’s closing gains for equities benchmarks the Sensex and the Nifty were respectable. The Sensex ended the day up 376 points, or 0.52%, at 72,426.64, while the Nifty 50 closed at 22,040.70, up 130 points, or 0.59%.

This week’s closing values for the Sensex, Nifty 50, and BSE Midcap index were all over one percent higher.

“Stock markets remained optimistic for the 4th straight session as Nifty once again reclaimed the crucial 22,000 mark helped by buying in banking, IT, auto and realty shares. While positive global cues boosted investors’ sentiment, the recent weakness has allowed investors to take exposure to beaten-down stocks,” mentioned Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.