In three trading days, foreign institutional investors (FIIs) bought stocks worth Rs 11,100 crore, marking a significant resurgence in Indian markets after weeks of relentless selling. After 38 consecutive sessions of net withdrawals from Indian markets, this is a notable turnaround.
On Monday, FIIs bought stocks valued at Rs 9,947.55 crore, starting the purchasing trend. On Tuesday, further purchases were made, totaling investments of Rs 1,157.70 crore.
Domestic institutional investors (DIIs) have been selling shares, despite FIIs’ increasing interest. DIIs sold shares valued at Rs 8,800 crore during the last two sessions. DIIs sold equities worth Rs 1,910.86 crore on Tuesday after selling stocks worth Rs 6,907.97 crore on Monday.
FPIs sold shares worth Rs 94,017 crore in October, continuing a trend observed then. FPIs are still net sellers as of this year, with outflows totaling Rs 9,252 crore. FPIs have been net sellers in November thus far, selling stocks valued at Rs 15,845 crore, despite the recent buying frenzy.
For Indian markets, which had been weakened by relentless selling in recent months, the reversal of FII activity is encouraging. The difference between FII buying and DII selling highlights different approaches to investing, with FIIs appearing to be more upbeat after positive political events.
Whether this buying enthusiasm continues or if it is a temporary reaction to regional events will be closely monitored by market watchers. In the meanwhile, future investment flows are probably going to be impacted by the continuous volatility in both domestic and international markets.
