FIIs Turn Net Buyers After 38 Sessions of Selling, Invest Rs 9,948 Crore
In a significant shift, Foreign Institutional Investors (FIIs) turned net buyers on November 25, investing Rs 9,948 crore into Indian equities after a relentless selling spree spanning 38 consecutive sessions. This move came as benchmark indices surged, fueled by optimism following the Maharashtra election results.
At market close, the Sensex soared 992.74 points (1.25%) to settle at 80,109.85, while the Nifty climbed 314.60 points (1.32%) to end at 24,221.90.
FIIs vs. DIIs: A Divergence in Strategy
According to provisional NSE data, Domestic Institutional Investors (DIIs) took the opposite route, net selling shares worth Rs 6,908 crore. Despite this, DIIs were active during the session, buying shares worth Rs 17,625 crore and selling stocks worth Rs 24,533 crore. FIIs, on the other hand, purchased equities worth a massive Rs 85,252 crore while selling Rs 75,305 crore, resulting in their net positive investment.
However, on a year-to-date basis, FIIs have been largely bearish, net selling Rs 2.84 lakh crore worth of shares. DIIs have countered this trend, stepping up as net buyers with investments totaling Rs 5.56 lakh crore.
In the past week alone, FIIs offloaded shares worth Rs 11,414 crore, adding to the Rs 1.55 lakh crore selling pressure recorded since October.
Top Gainers and Losers
On the Nifty, major gainers included ONGC, BPCL, Bharat Electronics, SBI, and L&T, reflecting bullish momentum in the energy and infrastructure sectors. Conversely, stocks like JSW Steel, Infosys, Bajaj Auto, Tech Mahindra, and Asian Paints witnessed declines, dampening enthusiasm in certain pockets of the market.
Analysts’ Take: Optimism Ahead
Market sentiment appears to be turning a corner. Analysts at Motilal Oswal, in a report dated November 24, noted that the BJP-led NDA’s victory could rejuvenate investor confidence. “This poll result, along with strong Kharif output and improving rural demand post a good monsoon, may trigger a mini risk-on rally,” the report highlighted.
Kotak AMC’s Nilesh Shah also emphasized the positive implications of the election results. Speaking to Moneycontrol, he said, “The results could instill confidence in the government’s ability to push through reforms, which may attract foreign investors who have been underweight on India for the past two years.”
Looking Ahead
The renewed interest from FIIs might mark the beginning of a trend reversal, especially if macroeconomic and political stability continues. With key indices hitting fresh highs, the Indian market seems poised for a potential bull run, but sustainability will depend on global cues, corporate earnings, and policy decisions.
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