MUMBAI, August 11 (IANS) – Foreign institutional investors (FIIs) have invested Rs 12,190 crore in Indian stock market over the past 10 days after remaining sellers over the past few months. However, domestic institutional investors (DII) sold shares worth Rs 2,677 crore during the same period.
An increase in the amount of money coming into the market helped the benchmark index soar and the rupee appreciate versus the US.
“There is a complete reversal in FPI activity in the Indian stock market. FPI, which was a relentless seller in the Indian market from October 2021 to June 2022, was a net buyer in July and buying has continued into August so far. FPI’s shift in strategy has fueled the market’s recent rally,” said Dr. V.K. Vijayakumar, Head of Investment Strategy at Geojit Financial Services.
Currents in the Indian market turned positive almost after nine months. Foreign investors invested around Rs 4,980 crore in Indian stock market in July. This comes after massive sales by these companies of around Rs 50,203 crore in June.
According to NSDL data, foreign investor inflows reached Rs 4,989 crore in July compared to outflows of more than Rs 50,000 crore in June, Rs 39,993 crore in May and Rs 17,144 crore in April.
The leading domestic indexes have also risen sharply in recent days. Sensex has gained over 2,500 points and Nifty has gained 746.65 points over the last 10 days and is now trading at 59,383.25 and 17,676.25 at the time of writing this story, respectively.
According to experts, foreign investors have become buyers in sectors such as capital goods, FMCG, construction and energy.
Meanwhile, the rupee also strengthened strongly after falling to a record low last month. At 13:30 the rupee was trading at 79.44 against the US dollar on the interbank FX market, up 8 paise from the previous close.