After weeks of persistent selling, foreign institutional investors (FIIs) have made a strong comeback in Indian equities, purchasing stocks worth Rs 11,100 crore in just three consecutive trading sessions. This marks a significant turnaround, following 38 straight sessions of net outflows from Indian markets.
Three Days of Buying Spree by FIIs
The buying trend began on Monday when FIIs purchased stocks worth Rs 9,947.55 crore. This was followed by additional buying on Tuesday, with investments amounting to Rs 1,157.70 crore.
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The renewed interest in Indian equities coincides with the Bharatiya Janata Party (BJP)-led Mahayuti alliance’s emphatic win in the Maharashtra Assembly elections. Analysts suggest this political stability may have bolstered investor confidence.
DIIs Maintain Selling Stance
While FIIs have shown renewed interest, domestic institutional investors (DIIs) have been offloading shares. Over the past two sessions, DIIs sold shares worth Rs 8,800 crore. On Monday, DIIs divested stocks worth Rs 6,907.97 crore, followed by sales amounting to Rs 1,910.86 crore on Tuesday.
Net FPI Activity in November and 2023
Despite the recent buying spree, foreign portfolio investors (FPIs) have been net sellers in November so far, offloading equities worth Rs 15,845 crore.
This continues a trend seen in October when FPIs sold shares worth Rs 94,017 crore. On a year-to-date basis, FPIs remain net sellers, with outflows totaling Rs 9,252 crore.
Month-by-Month FPI Trends in 2024
- September: FPIs were strong net buyers, investing Rs 57,724 crore in Indian equities.
- August: Purchases slowed to Rs 7,322 crore, down from Rs 32,359 crore in July.
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- June: FPIs bought Rs 26,565 crore after selling in April and May, where outflows were Rs 8,671 crore and Rs 25,586 crore, respectively.
- February and March: Net inflows of Rs 1,539 crore and Rs 35,098 crore were recorded
- January: The year started on a negative note, with FPIs selling shares worth Rs 25,744 crore.
Impact on Markets and Outlook
The reversal of FII activity comes as a positive signal for Indian markets,
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