Mumbai
Domestic institutional investors (DIIs) have injected more than Rs 1 lakh crore into Indian equities in October, in a new monthly record on Thursday. This influx comes amid significant selling by foreign institutional investors (FIIs), helping to maintain the robustness of the Indian stock market compared to global counterparts.
As of October 24, cumulative selling by foreign portfolio investors through Indian stock exchanges reached Rs 102,931 crore. Meanwhile, DII investments have totaled around Rs 4.41 lakh crore thus far in 2024, with two months remaining. This surge is attributed to increased retail participation through mutual funds, particularly through systematic investment plans (SIPs) and contributions from insurance and retirement funds.
The previous record for monthly DII inflows was set in March of this year, totaling approximately Rs 56,356 crore. Market analysts suggest that the continued inflows reflect a resilient domestic market backdrop, supported by strong Purchasing Managers’ Index (PMI) data and positive economic growth forecasts from the Reserve Bank of India (RBI) for the fiscal year 2025.
On October 30, foreign institutional investors sold equities worth Rs 4,613 crore, while domestic institutional investors purchased Rs 4,518 crore. A notable trend in the market has been the strong stock-specific actions, where better-than-expected results lead to sharp gains of up to 20%, while disappointing results see corrections of around 15%. This reflects a growing focus on individual stock performance over broader market trends.
