Amid FII selling, retail investors again prop up Indian market
MUMBAI : Retail and high net-worth individual (HNIs) investors have become a key bulwark for the Indian stock market in recent years. Latest data underscores their growing significance as a counterbalance to selling pressure from foreign institutional investors (FIIs) and “other" investor categories. This domestic buying spree has helped the Nifty outperform its Asian peers, such as Nikkei 225, South Korea's Kospi and Singapore's Straits Times Index, amid global market jitters.
Read this | Retail buying on 4 June pushes FY25 buys to levels seen in whole of FY24 In the month through 9 August, as FIIs offloaded shares worth ₹13,431.48 crore, domestic mutual funds stepped in, purchasing ₹13,855.18 crore, according to data from the National Stock Exchange (NSE). The “other" category, comprising companies, trusts, and financial institutions, sold off ₹4,827 crore. Yet, it was the retail and HNI investors who made the most decisive moves, net purchasing ₹10,599 crore.
Combined with mutual fund activity, domestic investors collectively poured ₹24,030 crore into the market, as per exchange data, effectively neutralizing the selling pressure from FIIs and others. These domestic inflows largely offset the selling by FIIs and the "others" category in both the cash and derivatives segments. FIIs and "others" together sold ₹18,258 crore in the cash segment, while FIIs alone sold index futures worth ₹11,102.41 crore from 1 to 9 August, according to NSDL data.
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