FIIs sell-off 18615 cr and DIIs invest 12600 cr in Indian market

Foreign Institution investors (FIIs) have consistently reduced their holdings in the Indian equity market in the last 6 months.

This selling started in October 2021 when the markets were at their peak.

The expectation of a hike in interest rate by the Fed due to inflation in the US, and rising valuations in the Indian market led to the sell-off.

Apart from this, oil prices and other commodity prices are at their peak due to the Russia-Ukraine conflict.

Which can reduce corporate earnings because the commodity is used as a raw material in many sectors.

DIIs have pumped 1.42 lakh crores into Indian equity in the last 6 months.

FIIs recorded a sell-off of 18615 crores in a few days of March 2022 start, but DIIs supported the market by investing 12600 crores.

In addition, bond yields also increased, so investors would invest more money in bonds, which would reduce the weightage of stocks in their portfolios.

According to the data of January and February 2022, foreign investors have outflowed capital of Rs 68895 crore from the Indian market.