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New Delhi, 12 October (Hindustan Reporter). Foreign institutional investors (FIIs) have so far remained net sellers in the Indian stock market in the month of October. During the trading week ending on Friday, foreign investors sold shares worth Rs 27,674 crore. On Friday alone, foreign investors sold Rs 4,163 crore in a day. A total of 9 trading days have taken place so far in the month of October. During these 9 days, foreign investors have been selling unilaterally. During this period, he made a net sale of Rs 58,394.56 crore in the Indian stock market.
According to the data available with the stock exchange, while foreign institutional investors kept selling indiscriminately in the month of October, domestic institutional investors (DIIs) kept trying to support the stock market by buying. On Friday alone, domestic institutional investors bought Rs 3,731 crore. So far in the month of October, domestic institutional investors have made net purchases of about Rs 57,792.20 crore.
If we look at the stock exchange data, this year foreign institutional investors have sold shares worth a total of Rs 1.97 lakh crore. On the other hand, domestic institutional investors have purchased shares worth Rs 4.76 lakh crore during this period. It is clear from this data that domestic institutional investors have tried to continuously support the domestic stock market by buying more than twice as much as the selling by foreign investors. Due to this buying by domestic investors, the stock market was not only saved from a big fall, but the market also remained in a continuously bullish trend.
Market experts believe that there has been a change in the way the domestic stock market is traded in the last few years. Earlier, trading in the stock market used to happen as per the wishes of foreign institutional investors. Foreign investors would sometimes speed up the movement of the market by making heavy purchases, while at other times they would destroy the stock market by making heavy sales in the market. Due to this, small and retail investors had to face huge losses.
Prashant Dhami, Vice President of Dhami Securities, says that in the last few years, the Central Government has adopted a policy of encouraging domestic institutional investors, due to which the situation of the stock market has changed. Due to the encouragement received from the Centre, domestic institutional investors have started creating strong positions in the market. Now, the more aggressively foreign investors sell in the stock market, the faster domestic institutional investors start buying. Similarly, when foreign investors buy aggressively, domestic institutional investors not only earn profits by selling, but also play an important role in maintaining the balance of the market.
Dhami says that due to this role of domestic institutional investors, unexpected fluctuations in the Indian market have almost stopped in the last few years. Even in adverse circumstances, the stock market fluctuates only by a maximum of one and a half to two percent. However, such ups and downs happen occasionally. It is clear that due to the incentives being given to domestic institutional investors under the economic policies of the Central Government, there has been a lot of change in the situation of the domestic stock market. Because of this, foreign institutional investors are no longer in a position to run the Indian stock market as per their wish. Due to this, the interest of small and retail investors in particular has also been protected.