FII, DII data: FPIs bought shares worth Rs 722 cr, DIIs added shares worth Rs 2406 cr on August 16, Wednesday Foreign institutional investors (FII) bought shares worth net Rs 722.76 crore, while domestic institutional investors (DII) added shares worth net Rs 2,406.19 crore on August 16, 2023, according to the provisional data available on the NSE. For the month till August 16, 2023, FIIs sold shares worth net Rs 9,148 crore while DIIs bought shares worth net Rs 9,220.65 crore. In the month of July, FIIs bought shares worth net Rs 13,922.01 crore while DIIs sold equities worth net Rs 1,184.33 crore. On Wednesday, domestic indices ended in the green. The NSE Nifty 50 rose 30.45 points or 0.16% to 19,465 and BSE Sensex climbed 137.50 points or 0.21% to 65,539.42. In sectoral indices, Bank Nifty plunged 0.33%, Nifty Financial Services tumbled 0.34%, Nifty Private Bank fell 0.46%, and Nifty Metal tanked 0.94%, while Nifty Media soared 1.20%, Nifty FMCG rose 0.41%, Nifty IT gained 0.59%, and Nifty Pharma climbed 0.61%. The top gainers on Nifty 50 were Apollo Hospital Enterprises, Ultratech Cement, NTPC, Infosys and Tata Motors, while the top losers were Tata Steel, Adani Ports, Hindalco Industries, HDFC Life Insurance and Bharti Airtel. Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, domestic institutional investors (DII), as the name suggests, invest in the country they’re living in. Political and economic trends impact the investment decisions of both FIIs and DIIs. Additionally, both types of investors – foreign institutional investors (FIIs) and domestic institutional investors (DIIs) – can impact the economy’s net investment flows.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.