FPIs infuse over ₹15,200 cr in equity market in just 4 days of Nov, DIIs emerge as net sellers
3 min read 05 Nov 2022, 04:01 PM ISTAs per NSDL data, FPIs pumped in ₹15,280 crore in the equities market from November 1st to 4th, while they were net sellers in other instruments.
PremiumIn four days of November month, FPIs have made strong buying in the equities market with inflows crossing over ₹15,200 crore. Although, FPIs were net sellers in October, however, it was the lowest monthly outflow in the current year so far. Notably, FIIs have been net buyers for the past seven days in a row. There is a decent flow expected from foreign investors going forward in the Indian market.
As per NSDL data, FPIs pumped in ₹15,280 crore in the equities market from November 1st to 4th, while they were net sellers in other instruments. FPIs outflow stood at ₹2,410 crore in the debt market, ₹4 crore in debt-VRR, and ₹17 crore in hybrid instruments so far in November.
Thereby, the overall, inflow in the Indian market came in at ₹12,849 crore between November 1-4 thanks to the robust pick up in the inflows in equities.
In October, FPIs had a volatile stance in equities. They began as net sellers, however, made some notable big buyings. This led to limited selloffs during the month to the tune of ₹8 crore from equities.
The selloffs in equities were far better in October than compared to the FPIs outflow in the debt market which was around ₹3,532 crore and the hybrid market at around ₹301 crore. They were net buyers in debt-VRR instruments with an inflow of ₹762 crore in October.
As per NSE data, FIIs inflow stood at ₹6,160.11 crore from November 1-4 in the equity market. While the inflow came in at ₹14,725.87 crore in the past seven days of buying. Overall, in October, the FIIs selloff was around ₹489.06 crore from the equities.
Surprisingly, domestic investors (DIIs) who have been major buyers resulting in the inflows in the equities market at record highs earlier this year, began November month as net sellers. They have been net sellers for seven consecutive days from October 27 to November 4th.
It was buying from DIIs in previous months of 2022 that managed to offset the impact of heavy outflow from foreign investors in Indian equities. But looks like there is a change in the trend this November.
In November so far, DIIs have pulled out ₹3,388.96 crore from equities. While they were net buyers in October and September with an inflow of ₹9,278.97 crore and ₹14,119.75 crore in equities. DIIs have been net buyers for most of the year except August and now November has begun with a selling bias from these investors.
It also needs to be noted that August is the month where FIIs made their highest buying for the year around ₹22,025.62 crore. They have been net sellers since the start of 2022.
Also, data from NSDL showed that FPIs infused ₹51,204 crore in August after buying ₹4,989 crore in July month.
Talking about FPIs' performance, K Dileep, Head of PMS at Geojit Financial Services said, "FPIs were net sellers in the month of October as they were in September. But the month of November started with a good note. So far they were net buyers to the tune of 6000 plus crores."
Going forward, Dileep added, "Expect decent flow going forward as the growth story of India is intact. Better than expected earnings and comfortable macro numbers are positive for India compared to other emerging markets."
He further said, "I don't expect any drastic move in the market on either side for another couple of quarters. But it is an ideal time for those who are looking at the medium to long term."
On Friday, Sensex closed at 60,950.36 up by 113.95 points or 0.19%. Nifty 50 closed at 18,117.15 up by 64.45 points or 0.36%.
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