Foreign Institutional Investors Sustain Net Selling Streak, Domestic Institutional Investors Post Significant Net Buys

Market Rebounds as Sensex Surges 3.95 Percent

Foreign investors (FIIs/FPIs) net sold Rs 2812 crore worth of Indian equities on April 8, while domestic institutional investors (DIIs) net bought shares worth Rs 4168 crore, according to provisional exchange data. This significant difference in buying and selling patterns highlights the contrasting investment strategies adopted by these two groups.

During the trading session, DIIs picked up shares worth Rs 29,003 crore and sold shares worth Rs 24,835 crore. FIIs, on the other hand, picked up shares worth Rs 19,092 crore and sold shares worth Rs 21,904 crore. This disparity in buying and selling activities resulted in a net purchase of shares by DIIs.

Year-to-Date Performance

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For the year so far, FIIs have been net sellers of shares worth Rs 2.11 lakh crore, while DIIs have net bought shares worth Rs 2.76 lakh crore. This significant difference in investment trends underscores the divergent views of FIIs and DIIs on the Indian equity market.

Market Performance

At close, the Sensex was up 2,946.32 points or 3.95 percent at 77,562.90, and the Nifty was up 873.70 points or 3.78 percent at 23,997.35. Nifty Midcap and Smallcap indices added 4% each. The sectoral indices also ended in the green, with Auto and Realty rising more than 6 percent, while consumer durables, oil & gas, telecom, infra, PSU Bank, and Private Bank advanced 3-5 percent.

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Market View

The rally was primarily driven by a sharp improvement in global sentiment following the announcement of a temporary ceasefire between the US and Iran, which led to a significant cooling in crude oil prices and eased concerns around inflation and global growth. Additionally, the Reserve Bank of India's policy decision to maintain status quo on rates with a neutral stance was perceived as supportive for equities. Stability in bond yields, a stronger rupee, and short covering after the recent correction further accelerated the up move.