FIIs begin September on positive note, invest ₹488 cr in Indian equities; At ₹2,295 cr, DIIs extend buying spree
₹122.52 billion ($1.48 billion) in August. FIIs emerged as net sellers in August on the back of a stronger dollar and high US bond yields. The domestic institutional investors (DIIs) emerged as net buyers in August and extended their buying spree in the first session of September as well.
As per the NSE data, FIIs cumulatively bought ₹15,219.61 crore of Indian equities, while they sold ₹14,731.67 crore --- resulting in an inflow of ₹487.94 crore. Meanwhile, DIIs infused ₹10,888.79 crore and offloaded ₹8,593.86 crore, registering an outflow of ₹2,294.93 crore. FIIs broke their buying streak of the last five months and cumulatively sold equities worth ₹20,621 crore in August.
DIIs had an offsetting position and bought to the tune of ₹25,017 crore last month. ‘’The FIIs ‘long short ratio’ in index futures remained relatively muted and ranged from 39 per cent to 51.4 per cent in the August series to close at its higher band,'' said domestic brokerage firm Motilal Oswal. Whereas, Religare Broking observes that FIIs long ratio is now at 50 per cent vs 59 per cent index futures implying more of hedged short positions into the September series.
Meanwhile, domestic equity benchmarks Sensex and Nifty settled higher on the first session of September, boosted by all-around buying in light of broadly positive global cues as well as strong domestic macro data. Government data released on Thursday showed that the Indian economy grew 7.8 per cent in the April-June quarter of fiscal 2023-2024, mainly on the back of double-digit expansion in the services sector. Sensex closed 556 points, or 0.86 per cent, higher at 65,387.16 while the Nifty closed the day with a gain of 182 points, or 0.94 per cent, at 19,435.30.
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