Foreign institutional investors (FII) sold shares worth a net Rs 624.61 crore while domestic institutional investors (DII) offloaded shares worth a net Rs 85.29 crore on Friday, February 17, 2023, according to the data available on NSE. For the month till February 17, FIIs sold shares worth a net Rs 1,408.36 crore while DIIs bought shares worth a net Rs 9,188.15 crore. In the month of January, FIIs sold shares worth a net of Rs 41,464.73 crore while DIIs purchased equities worth a net of Rs 33,411.85 crore.
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.
“The distinctive feature of stock market performance this year, so far, is India’s underperformance with Nifty down by 1.4% YTD. The principal reason for this variation in performance is the FPI outflows from India and inflows into other emerging markets like China, Taiwan, Hong Hong and South Korea. Outflows from India have been triggered mainly by the high valuations in India and inflows into other markets have been triggered by their relatively cheaper valuations. An important recent trend is that FPI selling has reduced significantly and FPIs have even turned buyers in some recent days. FPIs have been buyers in autos and auto components and construction. They were sellers in banking and financial services in which they are sitting on good profits,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.