DIIs step up buying in equity markets in August as FPI flows soften | Economy & Policy News

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Domestic institutional investors (DIIs) stepped up buying in the equity market in August, deploying a net of Rs 48,347 crore, the highest in three months.


The surge in DII inflows came amid the softening of foreign institutional investor (FII) flows. FIIs invested around Rs 10,000 crore this month after deploying over Rs 25,000 crore in the previous two months. In 2024 so far, FIIs have invested a net of Rs 43,878 crore. In the same period, DIIs have put in over Rs 3 trillion.


The strong flows helped the market scale new highs during the month. The benchmark Sensex and Nifty 50 indices ended the month with gains of 0.8 per cent and 1.1 per cent, respectively. The broader market indices representing midcap and smallcap stocks also ended with gains, albeit a bit lower than the gains in largecap indices.


DII flows have remained positive for 13 consecutive months now. The last time they were net sellers was in June 2023.


Mutual funds (MFs) have been the biggest contributors to the DII tally. They invested a total of Rs 35,622 crore in August.

MFs have emerged as a key support for the equity market as investors have been pouring in higher sums into these schemes through the systematic investment plan (SIP) route. In July, gross SIP inflows had touched a new high of Rs 23,332 crore. The surge in MFs’ equity buying in August indicates that inflows into MF schemes may have gone up this month.


Ebb and flow

Net investments (Rs crore)

Month

FPI

DII

Dec-23

58498

12942

Jan-24

-26111

26744

Feb-24

4000

25379

Mar-24

30897

56312

Apr-24

-6820

44186

May-24

-22159

55733

Jun-24

25940

28633

Jul-24

27958

23486

Aug-24

10174

48347


Data upto Aug 29, 2024

Source: NSDL /SEBI / Exchange

First Published: Aug 30 2024 | 6:36 PM IS

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