Foreign portfolio investors (FPIs) have shown a consistent bullish sentiment towards Indian equities, concluding a three-day buying spree on Thursday. They purchased stocks totaling Rs 4,667.9 crore, marking a notable influx of capital into the market. In contrast, domestic institutional investors (DIIs) have taken a bearish stance, selling off equities worth Rs 2,006.2 crore during the same period. This dynamic shift in investor behavior is reflected in the latest provisional data from the National Stock Exchange (NSE).
FPI Buying Trend Continues
On Wednesday, FPIs were also net buyers, acquiring equities valued at Rs 3,936.4 crore. However, their activity this month has been mixed; thus far in April, FPIs have disposed of shares totaling Rs 23,103 crore, according to data from the National Securities Depository Ltd. (NSDL).
DII Selling Pressure
Domestic institutional investors appear to be experiencing a trend of net selling. In March, they offloaded equities worth Rs 3,973 crore, a stark contrast to a significant selling wave of Rs 34,574 crore in February. The downward trend continued from January, where net sales reached a staggering Rs 78,027 crore.
Market Performance
Despite these contrasting trends among investors, the Indian equity market has shown resilience. The benchmark indices have recorded their most impressive week in four years, closing positively for three consecutive sessions on Thursday.
- NSE Nifty 50: Closed at 23,851.65, up by 414.45 points (1.77%)
- BSE Sensex: Ended at 78,553.20, gaining 1,508.91 points (1.96%)
Overall, the indices have surged over 4.3% in a week shortened by long weekend holidays, indicating a robust recovery.
Broader Implications
The ongoing purchasing by FPIs juxtaposed with the selling pressure from DIIs suggests a potential shift in market dynamics. Investors will be keen to observe how these trends evolve in the coming weeks, especially as economic indicators and global market sentiments fluctuate.
For a deeper understanding of market trends, consider exploring our insights on foreign investment strategies or the impact of domestic institutions in equity markets.
