Domestic Investors, i.e., DII, have Pulled out an Investment of about Rs 5,541.83 crore from the Indian Market in the last 8 days. Let us know the Reason Behind this
There has been continuous selling in the stock market for some time now. Due to continuous selling by foreign investors, there is a lot of pressure in the market. If we look at the index of the stock market, then there has been a slight restraint in the sell-off of FII, and they have been good buyers for some time now. Due to the lack of consistent market stability, investors are facing heavy losses; now there has been a slight decrease in the selling of FII,s while the selling phase has started in DII.
Under the Current National Stock Exchange NSE, in the last 8 Trading days, there has been a huge selling of Rs 5,541.83 Crore in the Indian Market by Domestic Investors.
Domestic institution DII has done this sell-off at a time when the Sensex and Nifty are trading well near their record levels. Nearly 6 per cent have been up under the benchmark index in the last 15 days. You can see that the Sensex has once again touched the record level of 61000 points, while the Nifty has managed to touch above 18000.
What do market analysts have to say?
Market analysts say that due to the slight uptick in the market, domestic investors are squaring off their shares and recovering profits, and at the same time, investors are raising money due to the market coming down again. If it has been seen, it has been seen due to some kind of redemption pressure from its investors, and maybe investors are thinking so too.
DII has Reduced Purchases in the Market Since June itself.
It is to be seen that only after June 2022, DII slowed down its purchase in the market. From January to June, DII had bought more than Rs 2.31 lakh crore. If we take its average, then this amount works out to about Rs 35,000 crores every month. But since the month of July, the buying of DIIK has slowed down a lot.
In the month of July, domestic investors had bought only Rs 10,500 crore. If the same is seen, then in the month of August I became a net seller and squared off the shares worth about Rs 6900 crore. In September and October, DII bought shares worth Rs 14000 crore and Rs 9200 crore, Respectively.
Why are Domestic Investors selling DII?
Vijay Kumar, Senior Advisor, Geojit Financial Services, has said that domestic investors, i.e., DII, have been collecting profits for the last one or two months. After a tremendous rally in the past, when the Nifty crossed 18000, the investors made profits. Because after the rally, investors have got to see good profits. Another reason why it has been easy for DII to make profits, especially at this time, is also believed to be because FIIs have recently started buying back into the market. FIIs have made about 2 Billion purchases in the last week. At the same time, it is also believed that the strategy of buying on every fall of DII has been very wise, and now its benefits are being seen.
The advisor told me in his specialty that domestic investors often behave in the same way as foreign investors. When foreign investors buy in the market, domestic investors sell.
Read more: Foreign Investors Continue to Exodus from the Indian Market
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