Key Highlights:
- Foreign Institutional Investors (FIIs) purchased shares worth ₹12,095 crore and sold shares worth ₹11,690 crore on September 23, resulting in a net purchase of ₹404 crore.
- Domestic Institutional Investors (DIIs) were also active buyers, with a net purchase of ₹1,023 crore, after buying shares worth ₹11,666 crore and selling ₹10,644 crore in the same trading session.
Overview of FIIs and DIIs Activity:
The provisional data provided by NSE (National Stock Exchange) revealed that on September 23, 2024, both FIIs and DIIs showed a positive buying sentiment, though DIIs outpaced FIIs in net purchases.
This marked a significant trading day where FIIs and DIIs both contributed to market liquidity. FIIs, despite being net sellers for most of the year, showed a renewed interest in purchasing equities.
Year-to-Date FII and DII Trends:
In the year so far, FIIs have net sold ₹1.2 lakh crore worth of shares, indicating a cautious or bearish sentiment in international investments toward Indian markets.
On the other hand, DIIs have been more bullish, with a net purchase of ₹3.3 lakh crore worth of shares in 2024. DIIs, including mutual funds, insurance companies, and other institutional investors, have shown consistent buying interest, offsetting the selling pressure from FIIs.
Stock Market Performance on September 23:
Sensex closed up by 384.30 points or 0.45%, reaching 84,928.61, while Nifty gained 148.05 points or 0.57% to close at 25,939.
Major gainers in the Nifty were stocks like Mahindra & Mahindra (M&M), ONGC, Bajaj Auto, SBI Life Insurance, and Hero MotoCorp. These stocks saw substantial buying interest from investors, contributing to the market's overall positive sentiment.
On the losing side, Eicher Motors, Divi's Laboratories, ICICI Bank, Tech Mahindra, and IndusInd Bank saw declines, dampening the broader market's gains.
Market Analysis:
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the markets opened the week on a positive note, with gains nearly reaching half a percent. This positive momentum was largely driven by global market optimism, which influenced Indian market trends.
Mishra noted that with Nifty nearing the key milestone of 26,000, a brief consolidation phase could be expected. However, the outperformance of rate-sensitive sectors such as banking, financial services, auto, and realty was a key highlight.
Mishra suggested that traders should adopt a "buy on dips" strategy, focusing on stock selection with a preference for large-cap and large mid-cap stocks.
Broader Trends in Institutional Activity:
The contrasting activity between FIIs and DIIs reflects global versus domestic investment behavior. While FIIs have largely been net sellers in 2024, possibly influenced by global macroeconomic conditions like interest rate hikes, inflation concerns, and geopolitical uncertainties, DIIs have maintained a positive outlook on the Indian economy.
DIIs' consistent buying has been a supportive factor for the Indian markets, helping absorb the selling pressure from foreign investors. This strong domestic institutional participation highlights confidence in India's growth story, particularly in sectors like financial services, infrastructure, and consumption.
Conclusion:
The net buying activity by both FIIs and DIIs on September 23, 2024, signals a positive sentiment in the Indian stock market, with DIIs taking a stronger position. As the market approaches key psychological levels, experts suggest a strategic buying approach focusing on select stocks. The overall market dynamics reflect a balance between global caution and domestic optimism, positioning Indian markets for potential growth amid ongoing volatility.
