On Wednesday, January 25, 2023, data available on NSE shows that foreign institutional investors (FII) sold shares worth a net Rs 2,393.94 crore while domestic institutional investors (DII) purchased shares worth a net Rs 1,378.49 crore. FII sold shares worth a net of Rs 23,254.43 crore for the month of January up until January 26 while DII purchased shares worth a net of Rs 19,140.58 crore. FIIs sold shares worth a net of Rs 14,231.09 crore in December, while DIIs bought stocks worth a net of Rs 24,159.13 crore.
Those who invest in a nation’s financial assets while not residing there are known as foreign institutional investors (FII) or foreign portfolio investors (FPI). In contrast, domestic institutional investors (DII) make investments in the nation in which they reside. Both FIIs and DIIs’ investment choices are influenced by political and economic developments. Additionally, both domestic institutional investors (DIIs) and foreign institutional investors (FIIs) have the ability to influence net investment flows in the economy.
The BSE Sensex down 774 points or 1.2% to 60,205 on Wednesday, the monthly F&O expiry day, while the NSE Nifty 50 fell 226 points or 1.2% to 17,891. Individual Adani Group stocks had a 2-6% intraday decline after Hindenburg Research disclosed that it has short positions in the company through derivative instruments traded outside of India and U.S.-listed bonds.
The market felt uneasy ahead of the next Union Budget and Fed meeting next week, which caused a big sell-off in Indian stocks. Persistent FII selling, where money is moving to other EMs because of favourable values, weakened sentiments. Additionally, a bleak prognosis for economic development that fueled concerns of a recession drove down global markets, according to Vinod Nair, Head of Research at Geojit Financial Services.