FIIs sell ₹5,600cr worth equities in 1st week of September
What's the story
Foreign institutional investors (FIIs) have offloaded Indian equities for all five days of the first week of September. The trend has resulted in a net outflow of ₹5,667 crore, according to data from the stock exchanges. On Friday (September 5) alone, FIIs sold a net worth of ₹1,305 crore in Indian stocks.
Market dynamics
DIIs step in to counter trend
Despite the continued selling by FIIs, domestic institutional investors (DIIs) have stepped in to counter the trend. Month-to-date, DIIs have mopped up shares worth ₹13,444 crore on a net basis. On Thursday and Friday alone, they bought over ₹4,050 crore net. Their buying has helped support markets amid sustained foreign outflows from Indian equities.
Previous trends
FIIs's sustained selling pressure since July
In August, FIIs sold equities worth ₹46,903 crore, marking a 13-year low in their shareholding in Indian stocks. On the other hand, DIIs absorbed shares worth ₹94,829 crore during the same period. The trend was similar in July when FIIs offloaded shares worth ₹47,667 crore while DIIs stepped in with net buying of ₹60,939 crore.
Information
Widening gap between DIIs and FIIs
The data from Prime Database shows that DIIs overtook foreign investors in March 2023 for the first time. The widening gap between the two highlights the growing dominance of domestic capital as a key driver of Indian markets.