FPIs Turn Net Sellers After Two Days of Buying; DIIs Continue Investment in Indian Equities

Foreign portfolio investors (FPIs) have recently reversed their trend, becoming net sellers of Indian stocks after two days of net buying. On Wednesday, FPIs sold shares worth Rs 1,012.24 crore, according to provisional data shared by the National Stock Exchange. This comes in stark contrast to the domestic institutional investors (DIIs), who continued to maintain a positive outlook by purchasing Rs 2,007.85 crore worth of stocks during the same period.

Recent Trends in Market Investments

The activity in the Indian stock market has been quite dynamic. In December alone, FPIs have invested Rs 12,931.58 crore in equities, while DIIs have bought Rs 2,758.04 crore. This highlights a significant disparity in the investment behavior of foreign and domestic investors. Data from November shows FPIs had a net selling of stocks worth Rs 45,974.1 crore, while DIIs were busy buying equities worth Rs 44,483.9 crore. The trend continued in October, with FPIs offloading about Rs 1.14 lakh crore while DIIs acquired Rs 1.07 lakh crore.

2024 Year-to-Date Performance

So far in the year 2024, foreign institutions have sold a total of Rs 11,115 crore in Indian equities. Compared to this, DIIs remain resilient in their buying efforts, underscoring a contrasting sentiment between these investors.

Market Response and Economic Outlook

As the fluctuations in the market unfold, analysts are keeping a close eye on the trading range of the markets. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, expressed expectations for markets to continue trading with a positive bias. This is attributed to intermittent FPI inflows and positive news surrounding government spending.

The broader indices showed some resilience, with the NSE Nifty 50 ending 31.75 points higher at 24,641.8. Similarly, the BSE Sensex increased by 16.09 points, closing at 81,526.14. This rise comes after three days of downward trends, though limited gains were noted primarily due to pressures from Reliance Industries Ltd. and banking stocks.

Conclusion

In summary, the current sentiment in the Indian equities market seems to be diverging between foreign portfolio investors and domestic institutional investors. While FPIs have opted to sell shares after a brief buying spree, DIIs continue their investment activities, reflecting their confidence in the Indian market's fundamentals.

FPIs, DIIs, Equities