On 10th September 2024, the stock market witnessed significant buying and selling activity from both Domestic Institutional Investors (DII) and Foreign Institutional Investors (FII), also known as Foreign Portfolio Investors (FPI). The data from that day shows a mixed approach, with domestic investors selling more than buying, while foreign investors showed confidence by heavily investing in the Indian market.
Domestic Institutional Investors (DII)
DIIs, which include banks, insurance companies, mutual funds, and other domestic financial institutions, were net sellers on 10th September. DIIs purchased stocks worth ₹12,153.63 crores but sold stocks amounting to ₹12,429.00 crores. This resulted in a net outflow of ₹275.37 crores.
A net outflow indicates that domestic institutions are pulling money out of the market, possibly due to concerns over local market conditions, inflation, or interest rates. When DIIs sell more than they buy, it sometimes signals caution or profit-booking after a market rally.
Foreign Institutional Investors (FII/FPI)
On the other hand, Foreign Institutional Investors (FIIs) had a net inflow into the market. FIIs bought stocks worth ₹16,771.58 crores and sold stocks worth ₹14,563.35 crores. This resulted in a net inflow of ₹2,208.23 crores, showing that foreign investors continue to have faith in the Indian market’s potential.
When foreign investors pour money into the stock market, it often reflects their confidence in the economy and the potential for higher returns. Inflows of this size can support the market, pushing prices up and boosting market sentiment.
Understanding the Impact
The DII outflow of ₹275.37 crores on 10th September 2024 might seem concerning, but it is offset by the FII inflow of ₹2,208.23 crores. This means that despite domestic institutions pulling back from the market, foreign investors are stepping in and buying heavily.
