Trading Activity of FII and DII - October 2021 - Indian Equity Market
Trading Activity of FII and DII - October 2021 - Indian Equity Market
The BSE Sensex has risen 50 Percent in the last one year and the NSE Primary index - Nifty50 has risen 52 Percent in the said period. Both indices have risen more than 20 percent in the current year so far. Recently the major indices of the Indian Equity market were traded at its Lifetime High.
Currently, both indices are trading down around 5 Percent from its peak. However, we cannot say that this is the significant correction. BSE Sensex is at 59,307 points and Nifty50 is at 17,672 points at the end of the last traded session of October 2021.
Generally, Indian Equity market is largely dominated by the Foreign Institutional Investors(FII) based on Net Purchase / Sales. The investment from the FII for the Indian Equity and Debt Securities will be substantial. With the Stock Market boom seen over the past one year and a half, the selling mode of Foreign investors are now on the Rise.
Foreign investors have sold shares worth Rs.68,500 Crore in the Equity Cash Segment so far (end of October) in the current fiscal year. In contrast, Domestic investors accounted for Rs. 56,179 Crore. It is noteworthy that some of the Rating and Investment Management firms have recently stated that the Current valuation is expensive for the Equity Market.
In the last seven months ending October 2021, Foreign institutional investors bought shares worth Rs.11.75 Lakh crore and sold shares worth Rs. 12.43 Lakh crore. Net Sales stood at Rs. 68,500 Crore for the FII. During the said period, the domestic institutional investors bought shares worth Rs. 8.62 Lakh crore and sold shares worth Rs. 8.06 Lakh crore. As a result, their Net Purchase is Rs. 56,179 crore.
Foreign investors had a Net sale of Rs. 25,572 crore in October alone. In the same month, the Domestic investors(DII) had a Net purchase of Rs.4,470 crore. The Market price of so many companies were trading at expensive valuation. However, there are currently some good stocks to invest based on Fundamentals.
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