Premium

DIIs buy Rs 57,792 crore in stocks, offset FPI sales of Rs 58,394 crore in October so far

The Corporation, the largest institutional investor, invested Rs 38,000 crore in the stock market in the June quarter and Rs 132,000 crore in the previous financial year.

Domestic institutional investors, DIIs mutual funds, foreign portfolio investors, stock markets, Indian express news

The BSE Sensex had fallen by 2885 points from 84,266.29 on October 1 to 81,381.36 on October 11.

Domestic institutional investors (DIIs), led by mutual funds and LIC, absorbed the massive sales by foreign portfolio investors, thus preventing a major crash in the stock markets since the beginning of the month. DIIs purchased stocks worth Rs 57,792 crore between October 1 and 11, while FPIs sold stocks worth Rs 58,394 crore during the period.

DIIs purchased Rs 13,245 crore stocks on October 7 and Rs 12,913 crore on October 3, according to stock exchange data.

On the other hand, FPIs sold Rs 15,243 crore worth of stocks on October 3.

Story continues below this ad

The BSE Sensex had fallen by 2885 points from 84,266.29 on October 1 to 81,381.36 on October 11.

The sustained inflows into equity schemes have aided DIIs to absorb sales effected by FPIs. Inflows into equity mutual funds were at Rs 34,419.26 crore in September, compared to inflows of Rs 38,239.16 crore in the previous month, according to AMFI data.

The contribution of systematic investment plan (SIP) stood at an all-time high of Rs 24,508.73 crore in September 2024 as against Rs 23,547.34 crores in August. “Many funds, especially LIC, are contrarians as they buy when other investors sell stocks,” said an analyst.

LIC made a profit of Rs 15,500 crore from the stock market in the June quarter, a rise of 13.5 per cent when compared to the last year.

Story continues below this ad

The Corporation, the largest institutional investor, invested Rs 38,000 crore in the stock market in the June quarter and Rs 132,000 crore in the previous financial year.

FPIs have been following a strategy of ‘Sell India, Buy China’ after the Chinese authorities announced monetary and fiscal measures to stimulate the slowing Chinese economy. “FPI money has been moving to Chinese stocks, which are cheap even now. Hang Seng index (Chinese H stocks are listed in Hong Kong) is now trading at a PE of about 12 while Nifty is trading at a PE of 23 times estimated FY25 earnings. So, more money can move to Chinese stocks. But India has much better growth prospects now compared to China and, therefore, India deserves premium valuations. But the valuation differential is too big now and this can sustain the FPI selling for some more time,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“The massive FPI selling didn’t have a serious impact on the market since the entire FPI selling has been absorbed by DIIs who are receiving sustained fund inflows. This trend of FPI selling and DII buying is likely to sustain in the near-term,” he said.

Tags:
stock market

The police said that Kumar, a resident of Turbhe MIDC in Navi Mumbai, was driving his concrete mixer truck when it collided with an SUV.

‘Unleashed aggressive dog to stop probe’: Sacked IAS officer Puja Khedkar’s mother booked

Cities10 hr ago

The mother of a dismissed IAS officer, Manorama Khedkar, has been booked by the police for obstructing an investigation and aiding suspects involved in a road rage incident. The incident occurred on September 13 and involved two men who allegedly kidnapped a truck helper.

View all shorts

Live Blog