In June, FIIS dump was Rs. 4,892 crore; DIIS steps with a purchase of 44,000 crore

Foreign institutional investors (FIIs) have reversed their boom from May and have become net sellers in Indian equity this month. According to the exchange data, FIIs have spent Rs 19,860 crore in the month of May, Rs. 4,892 crore equity was sold.

In contrast, domestic institutional investors (DIIs) have been consistently buyers, so far in June Rs. Buy 44,144 crore equity. Their continuous purchase has helped to offset the flow of FIIs and provides stability in the markets.

GeGit Financial Services Chief Investment Strategist D .. VK Vijay Kumar said that the strong trend in the market so far in June is an alternative activity between the purchase and sale of FIIs, while DII has been a one -day consistent buyers every day. “Through DII purchase of selling FIIs, the market is being fully absorbed.”

Despite the sale pressure, benchmark indicators have shown elasticity. So far in June, the Sensex is only 0.4% and the Nifty 50 is sliding 0.13%, which is mostly supported by strong domestic flow.

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Valuation and Yeeds Driving FII Strategy

FIIs look careful about high market evaluation and are also reacting to global macro uncertainties, including US bond yields. India’s 10 -year benchmark yield has dropped from 50 basis points to 6.2%this year, while 80 bps in 5 -year yield. The Indo-US bond yield has been compressed by a decrease of about 170 basis points of 21 years, making Indian debt less attractive to global investors.

Vijay Kumar noted, “FIIs are constantly being sold in the market due to the low difference between the yield of Indian and US bonds.” “In India, the bond yield remains under pressure, with a low trend of inflation and interest rates.”

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State -of -the -state risk

After Israel launched an airstrike on Iran, geographical political tensions also intensified the widespread risk-feeling. Since Iran’s revenge and fear of widespread conflict, global markets are on the edge, and the flow of FIIs may be more affected in the coming days.

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(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)