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Foreign and Domestic Institutional Investment Trends

On October 3, 2023, foreign institutional investors (FIIs) made net sales of shares worth Rs 2,034.14 crore in the Indian stock market, while domestic institutional investors (DIIs) purchased shares worth Rs 1,361.02 crore, according to provisional data from the NSE. This data reveals the investment activity of both foreign and domestic institutional players in the Indian equity market.

Monthly Trends

For the month until October 3, 2023, FIIs had a net selling position, offloading shares worth Rs 2,034.14 crore. In contrast, DIIs had a net buying position, adding shares worth Rs 1,361.02 crore. These figures highlight the divergence in investment strategies between foreign and domestic institutional investors during this period.

September Comparison

In the previous month, September, FIIs sold shares worth a net Rs 26,692.16 crore, while DIIs took a contrasting stance by adding equities worth a net Rs 20,312.65 crore. This suggests a significant difference in investment sentiment and actions between the two categories of investors.

Market Conditions

On the day of the data release, the Indian stock market experienced negative movements, with the NSE Nifty 50 declining by 0.56% to settle at 19,528.75, and the BSE Sensex falling by 316.31 points to 65,512.10. Factors contributing to this included rising US bond yields and a slowdown in India’s manufacturing activity.

Outlook and Factors Influencing Investment

Global concerns about potential US interest rate hikes, along with a 16-year high in US 10-year bond yields and a 7-month high in the Dollar Index, have impacted market sentiments. Profit booking has been observed in response to these factors. In the near term, market weakness is expected to persist, with a focus on individual stock performance.

Investor sentiment remains sensitive to economic data releases both globally and domestically. All eyes are on the upcoming RBI monetary policy announcement scheduled for October 6th, 2023, as it will play a significant role in shaping market dynamics.

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) play crucial roles in influencing India’s investment landscape, and their decisions are influenced by political and economic trends. Both types of investors have the potential to impact the country’s net investment flows.


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