February 21, 2024

FIIs were sellers of Indian equities in the 3 months before November

FIIs extended their buying in India on December 4 after BJP’s 3-state election win, lapping up Rs 2073 crore worth of Indian equities.  Also, DIIs bought Rs 4,797.15 crore according to stock exchange provisional data.

Earlier on November 30 after the exit polls predicted BJP victory in state elections, FIIs had bought Rs 8,148 crore of equities in the Indian market.

Benchmark NSE Nifty 50 surged 418.9 points to an all-time high of 20,686.8 whereas, Bank Nifty gained 1617.2 points to 46,431.4.

Market players say BJP’s victory in key states gives confidence to investors that the current government can put on a good show in the upcoming Lok Sabha elections.

Saurabh Mukherjea, founder of Marcellus Investment Managers said fund flows from Foreign investors will strengthen over the next 12 months. “It is relatively clear that the BJP’s hat-trick means that pretty much the entire Hindi-speaking belt is theirs. For now, the 2024 general elections as a key market risk is off the table, which means FII money will flow in over the next 12 months,” Mukherjea told Moneycontrol.

“So what we are seeing over the last 12 months is a whole new generation of FIIs, people who have never invested in India, but now considering India for the first time in their careers, trying to shift their money from China to India, even if they shift one-sixth of their China allocation, they will pretty much double the amount of FII money in India,” he added.

Veteran investor Madhusudan Kela also echoed similar sentiments. “When this money (FIIs) come to India, it will go into large liquid companies, so banks will be a beneficiary,” Kela said.

FIIs have been sellers until recently in the Indian markets. Even though FIIs were buyers in November, with Rs 5,795 crore, the buying activity happened only on specific days like the 10th, 15th, 16th, 23rd, 24th, 28th, 29th and 30th whereas they remained sellers on the rest of the sessions.

Also read: FIIs turn buyers in November, but limited to few sessions 

FIIs were sellers in the Indian markets from August to October as they sold Rs 20,620.65 crore, Rs 26,692.16 and Rs 29,056.61 crore respectively in the 3 months before November.

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