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Home >Markets >Stock Markets >DII net buyers of shares for second month in a row in April

DII net buyers of shares for second month in a row in April

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DIIs, including mutual funds, insurance companies and banks were net buyers of ₹1,465.31 crore worth equities in April,,. Photo: iStock
2 min read . 19 Apr 2021 Ashwin Ramarathinam

  • DIIs have remained net buyers for the second month in a row in April, while foreign institutional investors continued to sell equities in the month as benchmark indices turned lacklustre

Mumbai: Domestic institutional investors (DII) are putting their faith in stock markets even as covid-19 restrictions have started haunting investors once again. DIIs have remained net buyers of equities for the second month in a row in April, while foreign institutional investors (FIIs) continued to sell stocks in the month as benchmark indices turned lacklustre. Foreign investors were net buyers in the six months to March.

Mumbai: Domestic institutional investors (DII) are putting their faith in stock markets even as covid-19 restrictions have started haunting investors once again. DIIs have remained net buyers of equities for the second month in a row in April, while foreign institutional investors (FIIs) continued to sell stocks in the month as benchmark indices turned lacklustre. Foreign investors were net buyers in the six months to March.

DIIs, including mutual funds, insurance companies and banks, were net buyers of equities worth ₹1,465.31 crore in April so far. Domestic investors were net sellers worth ₹1.31 trillion during October-February. They bought equities worth ₹110.30 crore in September.

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DIIs, including mutual funds, insurance companies and banks, were net buyers of equities worth ₹1,465.31 crore in April so far. Domestic investors were net sellers worth ₹1.31 trillion during October-February. They bought equities worth ₹110.30 crore in September.

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"DII were the net buyers in March and we’re seeing a similar trend in April as well, largely led by healthy buying by mutual funds and insurance companies. The positive flow in the markets was driven by the increase in SIPs, cooling-off in redemption pressure and improvement of investment flow in broader markets" said Ajit Mishra, VP research at Religare Broking.

"Considering the short-term scenario, markets will be highly volatile amid rising covid cases as well as ongoing results season which impact the flows in near future. However, from a medium to long term perspective, we may expect DII flow to be positive on the back of increasing SIP flow, improving markets condition as receding cases and availability of vaccine which will help in improving economy and demand condition" he added.

After eight months of consecutive outflows, equity mutual funds witnessed a net inflow of ₹9,115 crore in March amid correction in the stock market. According to AMFI data, net inflow in equity and equity-linked open-ended schemes was at ₹9,115 crore in March, compared with an outflow of ₹4,534 crore in February.

Foreign institutional investors that were net buyers during October-March have turned net sellers in April. So far this month, they sold $395.27 million in equities. So far this year, foreign investors have purchased equities worth $6.93 billion.

Deepak Jasani, head of Retail Research, HDFC securities said "Mutual Funds were net buyers in March 2021 as investors took advantage of the intra month dip to get into equities even as the other avenues of investment seemed less attractive. For Insurance companies March is the month where historically the highest inflows are observed. Going forward, MF investors could keep investing in equities if the markets are at these levels or lower".

Equity markets traded under pressure for the second consecutive week and lost over 1.5% after covid-19 cases started rising.

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India reported its highest-ever single-day spike of covid-19 cases with over 2.73 lakh new cases and more than 1,600 deaths in the last 24 hours, according to the Union Health Ministry on Monday.

In the last 24 hours, 1,619 covid-related deaths were reported in the country taking the death toll to 1,78,769.

For the month so far, the benchmark indices, Sensex and Nifty lost 3.15% and 2.25% respectively. But, since the beginning of the calendar year, the benchmark indices Sensex gained 0.41% and Nifty advanced 2.70%

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