Foreign institutional investors (FIIs) have continued their trend of being net sellers in Indian markets, with a total divestment of ₹6,240.55 crore this week, despite the domestic equity benchmarks Sensex and Nifty 50 settling one percent higher. Meanwhile, domestic institutional investors (DIIs) reversed the trend by being net buyers, with a total investment of ₹8,731.6 crore, as per stock exchange data. The trend of FIIs selling shares in the Indian markets has continued in recent days, while DIIs have maintained their robust flows.
Data from the NSE shows that FIIs cumulatively bought ₹13,802.04 crore of Indian equities, while they sold ₹12,165.87 crore, resulting in an inflow of ₹253.28 crore on Friday, February 16. On the other hand, DIIs invested ₹12,165.87 crore and offloaded ₹10,594.87 crore, registering an inflow of ₹1,571.00 crore. The market remained range-bound due to the buying and selling trends, with FIIs selling equity worth ₹6,993 crore in the cash market and DIIs buying equity worth ₹5173 crore in the last two days.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the trend, stating that the FII selling trend is likely to continue due to the high 10-year US bond yield at 4.24 percent. However, the trend of DII buying is also expected to continue since the flows into the DIIs remain robust.
Despite the fluctuating trends, FIIs remain net buyers for three out of five sessions this week, while DIIs were net buyers for all five sessions, indicating a balancing act between the two investor groups. It will be important to continue monitoring the flow of investments from FIIs and DIIs in the coming weeks to gauge the overall sentiment of the Indian equity markets.
