FIIs remain net buyers in Indian stock market for third month in a row. Details here
FIIs remained net buyers in the Indian stock market for the third straight month in May, with a net inflow of ₹27,351.08 crore
PremiumIndian stock market logged decent gains in May as foreign institutional investors (FIIs) continue to remain 'net buyers' for third straight month. In May 2023, FIIs net inflow stood at ₹27,856.48 crore in cash segment whereas in F&O segment, FIIs' sold out shares worth ₹505.40 crore. Hence, FIIs remained net buyer in the month of May with net inflow of ₹27,351.08 crore. FIIs had remained net byers in the month of March 2023 and April 2023 as well.
FII data for May 2023
In the month of May 2023, FIIs bought shares worth ₹236,945.55 crore whereas they offloaded shares worth ₹209,089.07 crore, which means FIIs remained net buyers in cash segment with net purchase of ₹27,856.48 crore worth of shares. However, they remained net sellers in the Future & Option (F&O) segment. In F&O segment, FII bought shares worth ₹82,490.01 crore while they sold out shares of ₹82,995.41 crore worth in F&O segment, which means they remained net sellers in F&O segment as they sold out shares worth ₹505.40 crore in the segment. However, they continue to remain net buyers in Indian stock market in the month of May 2023 with net inflow of ₹27,351.08 crore in the month gone by.
In March 2023, FIIs bought shares worth ₹1,997.70 crore in cash segment whereas they bought shares to the tune of ₹147.18 crore. In the month of April 2023, FIIs bought shares worth ₹10,719.15 crore in F&O segment while in cash segment, they remained net buyers as they bought shares worth 5,711.80 crore in cash.
So, in the last three months, FIIs inflow in the Indian stock market stands at ₹45,926.91 crore.
On why FIIs are highly bullish on Indian stock markets, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Depreciation in the US dollar rates and lowering treasury yield is one of the major reasons for FIIs fishing out money from these asset class and shifting them towards the emerging equity markets. As Europe is fighting challenges posed by the energy crisis after Ukraine war, Brazil is going through political uncertainty whereas China is become a black box after the Covid-19 pandemic, India has become an obvious choice for the foreign investors and recent FIIs' inflow in the Indian equity market should be seen from this perspective."
Gorakshkar went on to add that Indian economy is showcasing strong signals as its GST and fiscal deficit numbers are quite promising and Q4 GDP of India has also remained better-than-expected.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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