FIIs continue 5-day buying streak pump in ₹589 Cr Indian equities on 25th May, DIIs buy ₹339 Cr
4 min read 25 May 2023, 06:37 PM ISTIndian equities ended slightly higher during Thursday's closing session despite worries covering US government debt and monetary tightening policies by the central banks.
PremiumIndian equities ended slightly higher during Thursday's closing session despite worries covering US government debt and monetary tightening policies by the central banks. The Nifty gained 0.2% and closed at 18,321.15, while the Sensex climbed by 0.16% and closed at 61,872.62 levels. On Thursday, foreign institutional investors (FIIs) continued their inflow into Indian equities for the fifth straight day. Despite the fact that earnings season is nearing its close, both FIIs and DIIs were net buyers. According to NSE statistics, FII buying value in Indian equities on May 25th was ₹8,521.07 crore, while the selling value was ₹7,931.97 crore, representing an inflow of ₹589.10 crore.
Whereas the net buying value of domestic institutional investors (DIIs) was ₹5,522.80 Cr and the net selling value was ₹5,184.36 Cr representing an inflow of ₹338.44 Cr towards domestic equities. Viidyes Totare, Director Archers Wealth Management Pvt Ltd said “Markets are in consolidation phase, refusing to correct, FII's continue 5 days buying streak buys ₹589.10 Cr equities on 25th May, If US Debt Ceiling Talks is Productive then markets will see new highs soon,, till then buy on dips is the best strategy."
Suman Bannerjee, CIO, Hedonova, a US based Hedge fund said “FIIs bought equities worth ₹589.10 crore, and DIIs invested ₹338.44 crore on May 25th, reflecting a positive market sentiment. This continuous buying can be attributed to factors like strong corporate earnings, favorable macroeconomic indicators, and positive global market trends. Both FIIs and DIIs find Indian equities attractive due to sector growth potential, good valuations, and favorable market trends. The upcoming macroeconomic data and Q4 results could also influence investment strategies. Sector-specific trends such as the rise of Auto and IT stocks and the decline of consumer durables and banking stocks are also important factors."
Milan Sharma, Founder, 35North Ventures, VC Firm said “With stable global macros cues and India a silver lining in the overall global GDP growth story, we are seeing FII turning positive. As the domestic economy is resilient and stable and indicators like monthly GST collection are on record high giving confidence to domestic funds, and they are on buying spree. Even the quarterly results were better than expected for most of the corporates, especially banks. We at 35North Ventures also remain positive on the market in the short run."
A R Ramachandran, Co-founder & Trainer-Tips2trades said “Over the past few sessions, a clear sign that any dip in the indices is being bought as indicated by consistent FII buying suggests a strong base/support for Nifty at 18060. While the market is certainly nowhere near lows, it is a sign that as long as the above support is held, trend could remain bullish and resistance of 18432 could be broken in the coming days."
Karan Aggarwal, Chief Investment Officer, Elever said “China’s economic re-opening story has failed to live up to expectations which has left FIIs high and dry. On the other hand, India’s macro story looks like a bright spot in a chaotic world and this story is coming quite cheap with valuations for Nifty 50 trading at a discount of 20%-30% to 5-year and 10-year averages. With inflation risk fading into oblivion and May 2023 on the way to record the highest monthly FII inflows since Feb 2021 despite 15-high interest rates, any positive action on interest rates from Fed in 2023-24 Q2 can trigger a massive bullish FII inflow cycle similar to one observed in FY 2020-21."
CA Manish Mishra, Virtual CFO said “FIIs are buying Indian stocks nonstop. Many market watchers are surprised at FIIs buying of Indian stocks in hordes. As on today India is one of the best stock markets in the world to invest in for FIIs. As a result of this nifty would touch remarkable mark . Index valuations have been corrected, domestic investors are in action too . This will continue to grow.FIIs are all the more confident now.The other reason for FIIs investment is that Indian economy is strong compared to other economies of the world in today's worrisome economic parameter. Even in developed countries,price hikes, recession ,trade deficit etc are reality unlike India."
Nifty Mid Cap grew by 0.4% in the broader market, while Nifty Small Cap climbed by 0.1%. The majority of sectoral indices ended the day in the green. The top gainers were Nifty Realty (+1.1%), Nifty FMCG (+0.6%), and Nifty Consumer Durables (+0.5%). Among the losers were Nifty PSU Bank (-0.5%) and Nifty Healthcare (-0.2%).
Manoj Dalmia, Founder and Director, Proficient Equities said “India’s valuation currently is less than its 5 yrs average PE of 24 (Nifty) and is in line with 10 yrs PE of 22, which makes it quite possible for investing on accumulation basis, though not aggressively. The midcap and small cap are priced well currently which is seeing some movement as well. The measure of government around Rs.2000 notes has also caused some liquidity to increase in the market due to reduced borrowing cost visible from the cut off yields of various dated T-Bills. Market can gain some momentum after Nifty crosses 18485 levels."
