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Flows show domestic investors getting active, is India losing sheen for foreign buyers

The data showed that FIIs were net sellers in January 2023 as well as 2024. Even after taking the Adani saga into consideration FIIs were still net sellers in January 2024. On the other hand, DIIs were net buyers in the same period.

On March 13, the markets saw a broad sell-off and Sensex slid to an intraday low of almost 1,600 points. However, what’s interesting is that domestic Institutional Investors bought shares worth around Rs 9,100 crore even when bears were on the prowl. 

The number is rather striking because DII and FII buying/selling is generally seen in  Rs 1,000 crore to Rs 3,500 crore band.  The next day, March 14, when the data came out it was found that Foreign Institutional Investors sold nearly Rs 4,600 crore in the same market.

Let’s explore some more data:

As per the data till March 13, FIIs have been rather muted in terms of investment in Indian equities compared to DIIs. This will be very clear from the point that DIIs have invested 2.9 times compared to FIIs. DIIs have invested Rs 28,589 crore until March 13 while FIIs have bought shares worth Rs 9,819 crore during the same period. Comparing data of FIIs’ activity in March from the previous year, FIIs have bought 4.9 times till March 13. 

In the leap-month February, DIIs were the net buyers and FIIs were the other way around. FIIs sold shares summing to Rs 15,963 crore in the cash market compared to DIIs who bought shares worth Rs 25,379 crore. Similarly, in February 2023, there were the same conditions. DIIs were net buyers and FIIs were net sellers. Where FIIs net sold equity of Rs 11,091 crore, DIIs became buyers of Rs 19,239 crore worth of shares. 

In January 2023, the data shows that FIIs had been very bearish, pulling out around Rs 41,500 crore, well, the Adani Group saga can’t be kept aside. But still, in January 2024, FIIs net sold shares worth Rs 36,000 crore. On the other hand, DIIs were buyers in both cases. They bought shares over Rs 33,400 crore and nearly Rs 26,800 crore in January 2024.

Talking about the broader picture, DIIs net bought shares worth Rs 83,200 in January 2023 and Rs 80,700 in January 2024 – half a month still left. On the flip side, FIIs remained net sellers in the first three months of both 2023 and 2024. FIIs sold over Rs 50,500 in 2023 and Rs 42,100 in 2024.

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