May 8, 2024
FII DII data: FPI sold shares worth Rs 932.44 crore, DII bought shares worth Rs 1264.74 crore on Feb 3
Foreign institutional investors (FII) sold shares worth a net Rs 932.44 crore while domestic institutional investors (DII) bought shares worth a net Rs 1264.74 crore on Friday, February 3, 2023, according to the data available on NSE. For the month till February 5, FIIs sold shares worth a net Rs 2,212.58 while DIIs bought shares worth a net Rs 4,165.57 crore. In the month of January, FIIs sold shares worth a net of Rs 41,464.73 crore while DIIs purchased equities worth a net of Rs 33,411.85 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 massive FPI selling in Indian markets impacted market sentiments. FPIs are selling in India and buying in cheaper markets like China, Hong Kong and South Korea where valuations are attractive. This “short India and long other cheaper markets” strategy has led to big underperformance of the Indian market, so far this year. While China, Hong Kong and South Korea are up by 4.71 %, 7.52 % and 11.45% respectively YTD India is down by 1.89%. This kind of underperformance is unlikely to last long. FIIs have also been hugely short in the derivatives market. The Budget turned out to be far better than expected. But the market couldn’t hold on to the gains since the Adani stock crisis impacted sentiments. Banking stocks were impacted by fears of Adani exposure impacting banks. But the RBI message that the Indian banking system is healthy improved sentiments leading to a late rally in banking stocks,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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