Foreign institutional investors (FII) bought shares worth a net Rs 1,603.15 crore while domestic institutional investors (DII) offloaded shares worth a net Rs 439.01 crore on Wednesday, July 5, 2023, according to the data available on NSE. For the month till July 5, FIIs bought shares worth a net Rs 5, 733.40 crore while DIIs sold shares worth a net Rs 1, 562.29 crore. In the month of June, FIIs bought shares worth a net of Rs 27, 250.01 crore while DIIs purchased equities worth a net of Rs 4, 458.23 crore.
The domestic equity indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session on a flat note. The NSE Nifty 50 dipped 9.5 points or 0.05% to 19,398.50 and BSE Sensex fell 33.01 points or 0.05% to 65,446.04. In sectoral indices, Bank Nifty tumbled 149.65 points or 0.33% to 45,151.80, Nifty Auto jumped 1.64%, Nifty FMCG surged 1.82% and Nifty PSU Bank soared 1%.
“The FPI liquidity driven rally is showing signs of losing steam. Some of the leading indicators like credit growth for Q1 from banking majors like the merged entity HDFC Bank indicate a possible slowdown in the economy. Two-wheeler sales in June indicate that demand continues to be a problem in rural areas. In brief, the macroeconomic scenario, though good, is not so bullish as to warrant continuation of the rally, which has already run a bit ahead of fundamentals. Investors should not chase low-grade small-cap stocks at this juncture. Stay invested in high quality large-caps. Wait for the Q1 results for direction,” V K Vijayakumar added.
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.